cenSEI T H E
Report
Volume 2 - Number 36 • October 15-28, 2012
NATION
Strategic Analysis and Research by the
Center for Strategy, Enterprise & Intelligence Because they don’t have a free media, they don’t have local elections, [China’s government] can’t really judge what their people are thinking … That’s one of the reasons I think that system is going to blow up at some point ~ Renowned American historian and thinker Francis Fukuyama, speaking about China to Agence France Presses. The 20-year period from the end of the Cold War to the financial crisis was an aberration where the U.S. was so much more powerful ... So the world is reverting to more normal distribution, which means – in relative terms – that, yes, the United States is less powerful ~ Fukuyama discussing the United States in the same October 11 interview
3 Are We Losing the Shabu Wars?
As top anti-drug officials trade corruption charges, the Philippines is tagged as a center for met amphetamine production and transshipment • Who has the habit: At least one out of every 50 Filipinos • Counting the cost: Criminals make over $300 billion a year, and law enforcers spend $100 billion
WORLD
15 Xenophobia Rears Its Head in Asia
Rising affluence and unfettered social media are stirring anti-foreign sentiments in the region • The Chinese diaspora: Ethnic Chinese in Southeast Asia have found ways to blend with their host nations
BUSINESS
23 Accidents Happen, But Don’t Just Wait for Them
The Philex Mining incident in Benguet underscores the need to institute and invest in systems to prevent mine disasters • Wealth of the nation: Who’s digging where for what in the Philippines
TECHNOLOGY
33 Faster, Higher, Stronger — and Techier
The Olympic motto Citius, Altus, Fortius is getting a high-tech boost from new gadgets for super performance, smarter coaching and sharper officiating • Excellence vs. tech-cellence: Who’s really winning the game — the player or the play gear?
HEALTH/LIFESTYLE
43 Bearing Life Brings Teenage Death
Childbearing complications are now the world’s No. 1 killer of females aged 15-19. And in ASEAN, the Philippines is second only to Laos in teenage pregnancy • Social accounting: For many countries, young motherhood brings heavy costs
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
POINT & CLICK You can access online research via the Internet by clicking phrases in blue
HEALTH/LIFESTYLE
Center for Strategy, Enterprise & Intelligence provides expertise in strategy and management, enterprise development, intelligence, Internet and media. For subscriptions, research, and advisory services, please e-mail report@censeisolutions.com or call/fax +63-2-5311182. Links to online material on public websites are current as of the week prior to the publication date, but might be removed without warning. Publishers of linked content should e-mail us or contact us by fax if they do not wish their websites to be linked to our material in the future.
Brief, Beefy and Noteworthy Which is easier to analyze, research and write — an eight-page article or a one-page Briefing Note? Answer: it depends on the deadline. The Center for Strategy, Enterprise & Intelligence publishes The CenSEI Report every two weeks, and its strategic analysis and research are planned a fortnight or even a month before publication, with ample time to refine outlines, augment research, sharpen analysis, and jazz up text and graphics. Briefing Notes, on the other hand, are done daily for clients of the CenSEI News and Strategy Alerts service. Note subjects are selected from NSA advisories sent by text, email or twitter to the same clients every hour Monday to Friday. After a Briefing Note goes out at day’s end, it is updated and augmented for The CenSEI Report coming out one or two weeks later. What makes NSA advisories and Briefing Notes far more difficult than the Report’s full-length articles is the identical strategic thinking and data gathering used for all of them, whether they go out every hour, every day or every half-month. After all, the information and insight that policy and decision makers need on any subject they have to understand and act on is pretty much the same as other issues. Hence, for every piece of strategically important news, people in charge must know what exactly happened, how important the event and its impact are for major strategic goals and fields of endeavor, and what strategies and actions should be implemented for the advancement of major governance, political, business and social objectives. For instance, when the PLDT-GMA7 takeover talks fell through early this month, NSA texts and tweets as well as a Briefing Note touched on the mega-convergence potential of creating the top broadcasting network and linking it with the leading telecoms group, the major satellite TV operation, and the broadband-capable power lines of the country’s largest electricity distributor — the kind of lucrative super-synergy that a visionary tycoon like Manuel V. Pangilinan may put off, but won’t pass up. Of course, the full Report articles provide more analysis and research, including dozens of in-depth studies, video and data online, as this week’s stories on Asian xenophobia, teenage pregnancy, narcotics, mining accidents, and sports technology show. There was far more time and space to elaborate on opposing arguments and alternative options with added video, charts and tables. But the aim and approach remain the same: providing policy and decision makers in government, business, politics and social affairs, as well as scholars and thinkers the knowledge and insight to understand and act in our complex, hectic world with strategy, enterprise snd intelligence .
3
NATION
cenSEI T H E
Report
The Unending Battle Against the Narcotics Trade Drug enforcement agencies in the Philippines should intensify its efforts to combat the country’s problem in drug abuse, manufacturing, and trafficking By Jerome Balinton
STRATEGY POINTS The total worldwide illegal drug trade is estimated by UNODC to be worth US$332 billion at retail level
T
he Philippines was listed by the International Narcotics Control Board – an independent and quasi-judicial body mandated to implement
the drug conventions of the United Nations – as one of several Asian countries where methamphetamines
Methamphetamine (shabu) and marijuana continue to be the main drugs abused in the country
continue to be the most commonly abused drug.
The local war on drugs has two fronts: domestic consumption and transshipment to other countries
Narcotics Control Board for 2011,” published in
The Philippines is also used by organized crime groups as a transit point for illicit drugs due primarily to its geographical location and long coastlines Apart from the problems it engenders among individual users themselves, drug abuse is also closely linked to crimes
According to the INCB’s “Report of the International February, seizures of methamphetamine in East and Southeast Asia continued to increase in 2010. Both the United Nations Office on Drugs and Crime (UNODC) and the Philippine Drug Enforcement Agency (PDEA) say consumption of methamphetamine hydrochloride and marijuana continue to be the main drug threats in the Philippines.
Shabu: Most abused drug. According to the
UNODC’s “Patterns and Trends of Amphetamine-Type Stimulants and Other Drugs, Asia and Pacific 2011” report – the consolidated primary information on the situation of amphetamine-type stimulants (ATS) in the region submitted by drug control agencies and designated institutions in Asia and the Pacific for the
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The local war on drugs: A continuing struggle
years 2009 and 2010 – methamphetamine use was
methamphetamine seized during the past five years –
reported as stable or declining in the Philippines.
in 2008. The amount seized in 2010 represents a 57%
4
decline from 2009, and is considerably lower than Nonetheless, the UNODC report says that
the totals reported in each of the previous four years.
methamphetamine hydrochloride, particularly crystalline methamphetamine, is still the most commonly abused drug in the Philippines. According
Marijuana: Second most widely used drug. Cannabis, under which marijuana falls, was and
to PDEA’s Annual Report 2010, shabu – as the
continues to be the world’s most widespread illicit
substance is referred to locally -- “continues to be the
drug, according to UNODC. While cannabis use is
most abused drug in the country,” representing 75%
stable or declining in several developed countries, it
of arrested persons per drug seized in 2010. In 2009,
is still increasing in many developing ones, including
62% of persons arrested were arrested in connection
the Philippines, where it remains the second most
with shabu.
widely used drug.
Increased manufacturing of ATS. Despite
PDEA records show a decline in terms of marijuana
declines in methamphetamine use, the UNODC
seizures. Marijuana accounted for 24% of the drugs
report says there was an increase in the illicit
seized in 2010, down from 35% in 2009, PDEA said.
manufacturing of ATS in Asia and the Pacific. In
But in terms of plantations sites, apparently the trade
2010, 442 ATS-related manufacturing facilities
in marijuana is still on the rise. Every year since 2008
were seized in East and South-East Asia, most of
until 2010, PDEA has eradicated increased number of
which were manufacturing amphetamines-group
marijuana plantation sites. A total of 106 plantations
substances. Significant quantities of ATS continued
were eradicated in 2008, 187 sites in 2009, and 207
to be illicitly manufactured in China, Myanmar,
sites in 2010.
and the Philippines. According to PDEA, the country’s topography is From 2002 to 2010, a total of 72 illicit crystalline
conducive to marijuana growth. The mountain ranges
methamphetamine laboratories were dismantled in
in Northern Luzon, Eastern Visayas, and Mindanao
the Philippines, including seven such laboratories in
are prime spots for marijuana cultivation. And based
2010, according to the UNODC report.
on the eradication efforts of PDEA nationwide, it showed that marijuana could also be grown in
The country registered a decrease in terms of
regular vegetable farms, or as the UNODC report
seizures. The report says a total of 63.6 kilos of
says, even indoors.
crystalline methamphetamine in addition to 46.4 liters of liquid methamphetamine was seized in
Methylenedioxymethamphetamine (MDMA)
the country in 2010; 149.3 kilos of crystalline
or ecstasy, another ATS, is also common in the
methamphetamine in addition to 831.5 liters of liquid
Philippines. A well-known party drug said to be
methamphetamine in 2009, and a single seizure
abused by affluent members of the society, PDEA says
of 745 kilos – the largest amount of crystalline
ecstasy comprised 1% of the drugs it seized in 2010.
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
5
Report
Number of Raids Conducted and Persons Arrested for Drug-Related Violations, 2000-2010
Other illegal drugs prevailing in the Philippines are cough and cold preparations, benzodiazepines, and inhalants, according to the 2006 research paper “Situational Analysis of Illicit Drug Issues
Year
and Responses in the Asia-Pacific Region,” by the
Raids
Person Arrested
2000
7,956
11,004
2001
16,991
18,367
2002
20,024
25,976
2003
23,305
33,150
2004
24,778
26,635
2005
10,720
16,158
2006
8,677
11,535
to PDEA. In PDEA’s annual reports in 2009 and
2007
8,627
10,710
2010, it was noted that there were 6,259 drug-related
2008
8,427
10,530
arrests reported nationwide in 2010, 9% lower than
2009
9,709
9,052
the 9,052 drug-related arrests in 2009, the UNODC
2010
11,163
8,259
Australian National Council on Drugs.
Drug-related arrests. From January to October
2011, the Philippine government conducted 9,850
anti-illegal-drug operations, resulting in the arrest of 8,491 suspects and 9,995 cases filed, according
report noted.
Table from Philippine Drug Enforcement Agency statistics posted on National Statistical Coordination Board website
Seizures of selected illicit drugs and precursors in the Philippines, 2006-2010 Drug type
Measurement
Crystalline
2006
kg
54.1
lt.
712.7
pills
83
kg
2007 368.9
2008
2009
2010
853.5
149.3
63.6
72.0
831.5
46.4
122
513
2,090
336
98.0
325.1
10.2
0.002
0.002
pills
99
1,376
3,926
1,060
5,818
Cannabis herb
kg
6,249.0
1,200.0
3,724.0
1,660.0
1,128.0
Cannabis resin
kg
24.5
7.7
Cannabis plants
plant
2,124,424
2,492,878
Cannabis seeds
kg
58.4
4.7
seedlings
588,544
Cocaine
kg
Ephedrine
kg
Pseudoephedrine
lt.
methamphetamine Liquid methamphetamine Ecstasy Ketamine Benzodiazepines
Cannabis seedlings
1.4 4,779,271
9,941,977
14.1
31.8
8.2
57,674
644,441
3,003,275
55,233
0.002
0.004
0.001
259.3
342.0
71.2
57.1
53.0
9.1
0.6
2.0
241.0
Not reported
Table from Drug Abuse Information Network for Asia and the Pacific in “Patterns and Trends of Amphetamine-Type Stimulants and Other Drugs, Asia and Pacific 2011,” UNODC
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The local war on drugs: A continuing struggle
Tracing the supply. According to PDEA’s regional
organizations involved in trafficking in ATS are
tracking of drug smuggling, ATS, particularly shabu,
exploiting West Africa in order to smuggle ATS,
are smuggled into the country from China and/
mostly methamphetamine, to other parts of the world
or Taiwan either directly or via Thailand. Shabu
(primarily East Asia) by courier, in a similar way to
manufactured in the Philippines is trafficked to North
that used by cocaine traffickers.
6
America, Europe, and Southeast Asia. The report says seizures started to increase in West Per PDEA and the U.S. Department of State’s “2010
Africa in 2008, with methamphetamine being
International Narcotics Control Strategy Report,”
smuggled into countries in East Asia, predominantly
traffickers are taking advantage of the Philippines’
Japan and the Republic of Korea. Seizures continued
long and porous maritime borders to use it as a
to be reported throughout 2009 and 2010.
transit point for smuggling drugs without being detected. The U.S. Department of State report cites
The afore-mentioned International Narcotics Control
a PDEA director general in saying that the value of
Board report, in its region-by-region analysis of the
illegal drugs trafficked through the Philippines totals
world situation, also said there is serious concern
$6.4-8.4 billion annually.
over the increased level of drug trafficking involving heroin, cocaine, and methamphetamine through
The UNODC’s World Drug Report 2012 reports that
East and Southeast Asia by West African and Iranian
there is growing evidence to suggest that criminal
organized groups.
TRAFFICKING IN AMPHETAMINE-TYPE STIMULANTS
Chart from Philippine National ATS Situation 2008-2009, Philippine Drug Enforcement Agency 2010 presentation, on United Nations Office on Drugs and Crimes website
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
7
Report
Illicit drug use is also frequently associated with behavioral problems, which, depending on the substance and the amount used, may include or result in aggression or violence
What the World Sniffs, Smokes, Snorts and Shoots
4.7% 20.7% 17.6%
Impact on crimes. The UNODC’s World Drug Report 2012 says illicit drug use is also closely
23.3%
33.5%
linked to crime in various ways. According to the report, drug users often resort to acquisitive crime to finance their habit. Additionally, many criminals are under the influence of illicit drugs, which reduce
Unweighted average of treatment demand (2001-2006) in Canada, Mexico and the USA
3.1% 10% 1.7%
inhibitions, when committing crime. Illicit drug use is also frequently associated with behavioral problems, which, depending on the substance and the amount used, may include or result in
33.2%
aggression or violence. Unweighted average of treatment demand in 24 countries of South America, Central America and the Caribbean, 1998-2006
The study “Correlation Between Substance Use and Index Crime Among Children in Conflict With the Law in Selected Rehabilitation Centers in Iloilo City and Guimaras, Philippines” by Hembra et. al., suggests that there is a significant correlation between substance use (drug abuse) and the
Opiates Cannabis
committing of index crimes.
Cocaine-type
(Index crimes refer to the major crimes that the
Amphetamine-type stimulants
police focus on in reporting crime statistics, i.e.,
Others
theft, robbery, assault, murder, homicide, rape, and car theft.)
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
No data available
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The local war on drugs: A continuing struggle
8
MAIN PROBLEM DRUGS (ACCORDING TO TREATMENT PROVIDED), 2007 OR LATEST YEAR AVAILABLE
8.4% 59.7%
%
7.4%
Co
19.5%
0.3
10.9%
ine
ca
10%
17.8% Unweighted average of treatment demand in 43 European countries or territories in 2003-2008
64.6%
Unweighted average of treatment demand in 43 Asian countries & territories in 1994-2007
8.4% 5.1% 7.2% 16.5%
52.1%
62.8%
0.4 %
Unweighted average of treatment demand in 32 African countries in 19952007
cai
Co
6.5% ne
19.8%
47%
26.3% Unweighted average of treatment demand in Australia and Mew Zealand 2005-2007
Note: Data generally account for primary drug use; therefore polydrug use may increase beyond 100% Map from United Nations Office on Drugs and Crime “World Drug Report 2009.”
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
9
Report
The study involved children in conflict with the law
In a May 2011 Philippine Star report, Dangerous
at Iloilo Rehabilitation Center, Dalayunan Home
Drugs Board Secretary Antonio Villar Jr. was
for Boys in Bo Obrero, Iloilo City, and the Regional
reported as saying 80% of heinous crimes
Rehabilitation Center for Youth in Guimaras. It was
committed are drug-related. Heinous crimes
conducted from November 2005 to February 2006
include murder, rape kidnapping, illegal detention,
with the aim of determining a correlation between
robbery, destructive arson, not to mention drug
substance use and index crime among these children
abuse, according to Heinous Crimes Law or
using an analytical cross-sectional study.
RA 7659.
The study found that crimes against property and
Driving factors behind long-term trends.
drug-related crimes were common among multiple-
According to the UNODC’s “World Drug Report
substance (combinations of any form of alcoholic
2012,” understanding why and how the illicit drug
beverages, marijuana, rugby, shabu, and other illegal
economy evolves is a complex undertaking. A review
substances) users. There was a strong correlation
of what can reasonably be considered to be risk
between the type of index crime and the type of
factors and predictable drivers of the illegal drug
substance used when the crime was committed.
economy and, on the other, of what remains largely
Among the children in conflict with the law, there is a
unforeseeable, can help take stock of the challenge
strong correlation between the type of substance used
that designing proactive drug policy represents and
and the type of crime committed, the study says.
draw some cautious conclusions.
Crime rate by Area and by the Type of Crime per 100,000 population, 2001-2010 Year
Index Crimes Philippines
Non-index Crimes
National
Outside
Capital
NCR
Philippines
National Outside Capital
Total Crimes Philippines
NCR
National Outside NCR Capital
Region
Region
Region
(NCR)
(NCR)
(NCR)
2001
48.5
78.0
44.1
49.5
68.1
46.7
98.0
146.1
90.9
2002
54.6
90.6
49.2
52.4
96.0
46.0
106.9
186.6
95.2
2003
52.1
97.0
45.6
50.1
103.0
42.3
102.2
200.1
87.9
2004
51.1
09.9
45.3
41.4
75.7
36.4
92.5
166.6
81.7
2005
51.6
90.0
46.1
38.4
69.0
34.0
90.0
158.9
80.1
2006
47.8
89.0
41.7
34.1
78.5
27.5
82.0
167.5
69.2
2007
41.8
80.1
36.1
32.6
75.6
26.2
72.9
155.8
62.3
2008
40.4
81.9
34.5
33.5
73.0
27.8
73.9
154.9
62.4
2009
327.1
359.3
322.
217.9
164.1
225.5
545.0
523.4
548.1
2010
218.0
233.8
215.8
208.0
115.0
221.0
426.0
348.8
436.8
Table from National Statistical Coordination Board, 2012
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The local war on drugs: A continuing struggle
10
Who’s got the habit in the Philippines — and why Based on the results of its 1999 survey, the Dangerous Drugs Board estimated there were 3.4 million drug users in the country at that time. Of this, 1.8 million were regular users, while 1.6 million were occasional users. Meanwhile, based on the results of its survey in 2004 conducted in selected regions and study areas in the Luzon, Visayas, Mindanao, and National Capital Region, having 12,000 respondents aged 10-44, DDB estimated that there might be 6.7 million drug users at that time of the survey. On its most recent undertaking, the “Study on the Current Nature and Extent of Drug Abuse in the Philippines,” conducted in 2008 with the Department of Interior and Local Government in 16 regions though guided interview and self-administered questionnaire, it was estimated that the Philippines had an estimated 1.7 million drug users in the past year, or roughly 2% of the total population between the ages of 10 and 64. The study was based on a survey of 12,714 respondents. Of the total number of respondents, 1,344 or 10.57% have tried drugs. Of those who tried drugs, 25.74% came from Region 7 (Central Visayas), followed by Region 10 (Northern Mindanao) with 10.43%, and the National Capital Region with 9.82%. Respondents who continued their drug-taking behavior, or current drug users, at the time of the survey, were 322 or 2.5% of the total number of respondents. The youngest age group 10-19 in the survey accounted for 88 respondents (0.69%), followed by age group 20-29 with 102 (0.80%), and 30-39 with 67 (0.53%) years old. With regards to gender, there were far more males (87.35%) than females who tried drugs. The study also noted the significance of educational attainment in drug-taking behavior. Of those who have tried drugs, 448 (33.33%) have reached high-school level, 226 (16.28%) were high-school graduates and 336 (25%) have reached college. Only four (0.30%) had no formal schooling. As to employment status, unemployed drug-takers represented 30.73% of total drug-takers, followed by those employed in the private sector (16.22%), students (10.49%), and out-of-school youth (9.97%). Shabu, marijuana, and contact cement were the three most commonly abused drug of those who continue their drug-taking behavior. Reasons given for first use of drugs were: curiosity, peer pressure, personal problems (family and marital). Reasons of those who continued using drugs were: peer pressure, family, personal and work-related problems, and the combination of having family, personal and work-related problems aggravated by peer influence.
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
11
In terms of socio-cultural drivers, the UNODC
Poverty, as a social problem in the country, is one of the push factors behind the participation of the arrested persons in drug-related violations in 2010
report says the changing societal value systems and an increasingly popularization of youth culture greatly influenced the evolution of the illicit drug problem. The prominent youth culture has taken place alongside an orientation towards a Western way of life, which may, for some, include the temptation to use illicit drugs in many developing countries. The report also says that the trend towards decreasing social control, often in parallel with high urbanization and migration rates, also contributes to the illicit drug economy. The report says this may lead to cultural changes, the weakening of
The 2008 DDB survey and UNODC 2012 report posit
traditionally strong family ties, and a declining
that young people generally use more drugs than
importance of traditional value systems.
older people, even if the gap is narrowing in some places. They are the most vulnerable sector to using
In terms of socioeconomic issues, unemployment
illegal drugs, primarily because of the reasons for
appears to be a key driver of drug trafficking and
first use cited earlier.
illicit drug use. The report says unemployment increases the likelihood of participation in the
Data also show that more males than females use
illicit drug trade and illicit drug use. Given the
drugs. This happens due to large gender-differences
high unemployment rate in many countries, in
in the risk-taking behaviors of Filipino adolescents
particular among youth, entry into the workforce
and youth, as explained by Lita Domingo and Paz
is often a major challenge. Consumption of illicit
Marquez, and as cited by Minja Kim Choe and
drug may limit an individual’s chances of entering
Corazon Raymundo in their 2001 paper, “Initiation
(or remaining in) the workforce, while frustrations
of Smoking, Drinking, and Drug-use Among Filipino
caused by failure to find adequate employment
Youths.” Generally, Filipino society accords more
sometimes favors drug consumption, thus creating a
liberties and allow a wider range of social activities to
vicious circle.
men than women, Choe and Raymndo wrote. PDEA’s 2010 annual report also posits that poverty, According to the UNODC report, another major
as a social problem in the country, is one of the
socio-demographic driving factor is agglomeration
push factors behind the participation of the arrested
density, or level of urbanization. Generally, more
persons in drug-related violations in 2010. According
illicit drug use takes place in urban settings than in
to the report, 58% of persons arrested in 2010 were
rural settings, the UNODC report says.
underemployed, while 21% were unemployed.
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The local war on drugs: A continuing struggle
The cost of the world’s illegal drug trade According to “The Alternative World Drug Report: Counting the Costs of the War on Drugs,” by Count the Costs – a collaborative project between a range of organizations that share a desire to reduce the unintended costs of the war on drugs – the UNODC has made several attempts to estimate the size and extent of the global drug market. UNODC’s 2005 World Drugs Report, for instance, puts the market’s value at US$13 billion at production level, $94 billion at wholesale level (comparable with the global textiles trade) and US$332 billion at retail level, according to Count the Costs. In its 2011 report, UNODC said the illicit drug trade is the most profitable criminal sector, accounting for one-fifth of the estimated US$1.5 trillion generated by all the world’s crime. According to the Al Jazeera report linked to here, up to 272 million people used illicit substances in 2010, and in turn, governments across the globe annually spend $100bn in fighting a “war on drugs.”
News & Strategy Alerts Nation
12
Making the MILF peace framework work The MILF peace framework aims to create a new autonomous entity called Bangsamoro. But before cheering, make sure there is an ironclad provision for disarmament, demobilization and reintegration of rebel forces
In Malacañang Palace on October 15, Philippine President Benigno Aquino III and Malaysian Prime Minister Najib Razak are to witness the signing of the peace framework between the Philippine government and the largest Muslim rebel group, the Moro Islamic Liberation Front (MILF). The preliminary accord envisions a new autonomous political entity to be called Bangsamoro, President Aquino announced on October 7. A final peace agreement is targeted by year’s end, less than three months hence. The proposed Bangsamoro entity is to replace the current Autonomous Region in Muslim Mindanao (ARMM). Under the 2012 Framework Agreement on Bangsamoro, a blueprint for setting up the new Moro homeland, the future autonomous entity replacing ARMM will have a parliamentary form of government with elected leaders. A 15-member Transition Commission is to be established to draft legislation creating Bangsamoro, which will be submitted to
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
13
Some stakeholders claimed they were not consulted. Senior MILF member Abdulhamid Ganalan told Agence France-Presse (AFP) that he and other rebels among the 12,000 MILF troops had not yet learnt about the details of the agreement, in an Agence France Presse report in the Manila Times. He further stressed he and his subordinates did not want to give up their weapons as part of a peace accord.
No disarmament, demobilization, and reintegration provision is mentioned in the blueprint
Meanwhile, no disarmament, demobilization, and reintegration (DDR) provision — a integral part of post-conflict peace consolidation — is mentioned in the blueprint. The United Nations page for peacekeeping says in the DDR process, weapons are removed from
Congress and, upon enactment into law, subjected to plebiscite by voters of affected areas. Bangsamoro would also have the power to legislate its own sources of revenue and levy taxes, fees, and charges, and receive an equitable share of natural wealth. The national government will retain control over defense and security, foreign policy and broad monetary policy, and citizenship and naturalization in the planned autonomous region.
ONE ISLAND, FOUR DECADES AND 150,000 DEAD ABS-CBN Timeline on Mindanao Rebellion
Even in the days before the framework signing, however, there were open objections from certain quarters, including no less than former Moro National Liberation Front chairman and former ARMM governor Nur Misuari. “The term of agreement is unacceptable,” he told the Philippine Star. Other former leaders of the MNLF, which signed a 1996 peace accord with the Ramos adminisation, warned of renewed rebellion, the Manila Times reported. The Philippine National Police is on alert amid apparent threats of antiaccord violence.
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
14
President Aquino announces MILF peace framework RTVM
the combatants and civilian population. In addition, combatants are taken out of military structures to acquire civilian status and gain sustainable employment.
major stakeholders. One key player to win over: the Organization of Islamic Cooperation, longtime backer of Muslim autonomy. The OIC welcomed the pact with “cautious optimism,” according to GMA7 News.
Instead, part of the agreement is normalization, wherein the MILF will undertake a graduated program to decommission their armed units. In phases, all law-enforcement functions shall be transferred from the Armed Forces of the Philippines (AFP) to the Bangsamoro police. The accord also provides for a commitment by both parties to work towards the reduction and control of arms in the area and the disbandment of private armies and other armed groups.
In 2008, then-President Gloria Macapagal Arroyo negotiated a similar framework, dubbed the Memorandum of Agreement on Ancestral Domain (MOA-AD) outlining elements of a proposed Bangsamoro juridical entity. Arroyo scrapped the pact when its constitutionality was questioned before the Supreme Court, which subsequently declared portions of the MOA-AD unconstitutional.
There are high hopes here and abroad that the framework will prove to be a vehicle towards genuine peace for the people in the region, whose development has long been hampered by conflict. However, the final agreement must be discussed in full transparency, with ample consultations with
PREVIOUS PAGE
The
cenSEI Report
This time, the Aquino government insists there is no need for constitutional amendments to bring the Bangsamoro deal in accord with the charter. Of course, more than the law, the real test of both preliminary and final peace agreements will be the acceptance and compliance by key parties and stakeholders.
• October 15-28, 2012
NEXT PAGE
15
cenSEI
WORLD
T H E
Report
Xenophobia in Modern Asia The perils of diversity in a digitally connected, fast-growing region By Tanya L. Mariano
STRATEGY POINTS Recent events reveal that xenophobia is very much alive even in advanced Asian cities The speed and anonymity offered by the Internet facilitate the spread of antiforeigner sentiments The region must address racial tensions immediately or risk undermining achievements in peace and progress
A
sia is a rising global economic powerhouse. By 2050, it will be home to some of the wealthiest nations in the world, predicts “The Wealth Report 2012” by Kinght Frank and Citi Private Bank. And yet, today, it is still plagued by issues of racial tensions that apparently have been silently brewing in the background while growth and progress hog the spotlight, rearing its ugly head only when triggered by powerful events. And the double-edged sword that is the Internet doesn’t help. Often hailed as a liberating and democratizing tool, the Internet, which offers anonymity and speedy communication, also enables and fuels xenophobic attitudes to the point that cyberspace becomes just another channel where offline biases surface.
Car crash exposes anti-foreigner sentiments in Singapore. In the island-state of Singapore, a car crash in May exposed long-stewing antiimmigrant sentiments, which stem from the surge in new arrivals due to government policies designed to attract immigrants, as reported in The New York Times.
Ma Chi, a 31-year-old Chinese financial investor driving a $1.4-million Ferrari, beat a red light and hit a cab, killing himself, the taxi driver, and the taxi’s passenger. According to the article, in the days following the accident, blogs and social media were abuzz with comments blaming foreigners, particularly mainland Chinese like Ma, for “upending Singapore’s gracious, well-mannered ways.” Mainland Chinese were also criticized for “stealing the best jobs, driving up real-estate prices, and clogging the roads with flashy European sports cars.” Singaporean online news portal The Temasek Times, in a May 15 article, stressed how Ma Chi’s nationality is a big part of the issue. It criticized Tessa Wong,
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Xenophobia in modern Asia
a journalist for the Straits Times, one of Singapore’s
Deputy Prime Minister Teo Chee Hean, speaking to a
oldest English-language newspapers, who had called
parliamentary committee, defended the government’s
Singaporeans out on their xenophobic reactions to the
immigration policies and said that both skilled and
incident. On her Twitter account, Wong wrote, “It’s
unskilled foreign workers were vital in offsetting the
bad, careless driving and irresponsible behavior that
country’s rapidly aging population – the median age
causes fatal car accidents. Not one’s nationality.”
has gone up from 29.8 in 1990 to 38.4 in 2012, based
16
on the “Population Trends” report – and in sustaining The Temasek Times has been criticized for stirring
economic momentum, according to The New York
anti-foreigner sentiments and a blogger who calls
Times article.
himself “Little Fish” has asked Singaporeans to boycott the Facebook pages of The Temasek Review, The Temasek Times, and Temasek Review, which he calls “fake websites and Facebook pages” that have been disseminating “political lies” and “misinformation,” aside from serving as the “source of xenophobia.”
Singapore needs foreigners. According to the
Singapore Department of Statistics report, “Population Trends 2012,” the small nation’s population as of June stood at 5.31 million, of which 3.82 million are Singapore residents –3.29 million Singapore citizens and 0.53 million permanent residents – and 1.49 million are non-residents.
Age Distribution of Singapore’s Resident Population Age Group (Years) Total (%)
1990
2000
2010
2011
2012
100.0
100.0
100.0
100.0
110.0
Below 15
23.0
21.9
17.4
16.8
16.4
15-24
16.9
12.9
13.5
13.6
13.7
25-34
21.5
17.0
15.1
14.8
14.4
35-44
16.9
19.4
16.7
16.4
16.3
45-54
9.0
14.3
16.6
16.7
16.5
55-64
6.7
7.2
11.7
12.4
12.7
65 & Over Median Age (Years)
6.0
7.2
9.0
9.3
9.9
29.8
34.0
37.4
38.0
38.4
Singapore’s resident population is aging rapidly: from 29.8 in 1990, the median age of Singaporeans has grown to 38.4 in 2012 Table from Singapore Department of Statistics, “Population Trends 2012,” page 2
A September 2012 report, “MTI Occasional Paper on Population and Economy,” from Singapore’s Ministry of Trade and Industry details this thrust: To address the decline in its citizen workforce and cope with the demographic shift, the government plans to implement a multi-pronged strategy that includes Caught on camera: The car accident in Singapore that uncorked Singaporeans’ anti-foreigner sentiments Video grab from video report uploaded to The Wall Street Journal
PREVIOUS PAGE
The
cenSEI Report
complementing their resident workforce with foreign workers through a calibrated inflow of foreign manpower.
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
17
Hong Kong’s growing distrust of mainland Chinese. Hatred directed at mainland Chinese
alarmed by Beijing’s political sway there and
is also apparent in another small territory – Hong
territory.” Earlier, Leung had been nicknamed
Kong. In the wake of the October 1 collision of two
“wolf” by critics for having close ties to Beijing.
ferryboats off Lamma Island near Hong Kong, which has killed at least 36 people, China’s offers of assistance and condolences drew criticism and
by the presence of mainlanders in the Chinese
Online racial attacks on Filipina-Korean lawmaker Jasmine Lee. But it’s not only
mockery online, according to an article on The Wall
mainland Chinese who are at the receiving end
Street Journal’s blog, “China Real Time Report.”
of xenophobic attitudes. In April this year, a Philippine-born naturalized Korean was the target
Local television channels showed footage of Li
of several racist attacks, reports ABS-CBN News.
Gang, deputy head of Beijing’s liaison office in
Jasmine Lee, who met her late Korean husband,
Hong Kong, visiting some of the victims at a
Lee Dong-ho, in college at Ateneo de Davao
hospital and speaking to the media, while Hong
University and moved to Seoul in 1995, is a civil
Kong Chief Executive Leung Chun-ying stood in the
servant and actress and is the first naturalized
background. A digitally manipulated still from the
Korean to become a lawmaker.
footage went viral online, and Hong Kong residents expressed concern over what looked like Beijing
According to the Korea Times article referenced
calling the shots in the former British colony.
in the ABS-CBN report, Lee’s election into the National Assembly as a party-list candidate of
According to the article, this is “the latest sign
the ruling Saenuri Party prompted a wave of
of displeasure from some Hong Kong residents
racially based attacks on the Internet, with some bloggers and users of Twitter saying her election “will pave the way for interracial families to gain at the expense of Koreans and producing more illegal aliens.” One Twitter user reportedly wrote, “Following the immigrant wife Lee’s entry to the Assembly, we can well predict the rise of unregistered foreigners and foreign women marrying in return for money. We’ll see the truth of multiculturalism that exploits Koreans.” False rumors about Lee spread quickly, which
An Internet user digitally manipulated a photo of Li Gang, Deputy director of Beijing’s Central Liaison Office in Hong Kong, and Hong Kong Chief Executive Leung Chun-ying. The user “Photoshopped” a traditional Chinese headpiece onto Li, and put a smaller hat on Leung China Real Time Report, The Wall Street Journal
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
means many of the online bashers were terribly misinformed. The report also notes that the incident exposed a particular bias of Koreans against Southeast Asians.
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Xenophobia in modern Asia
18
The Chinese diaspora in Southeast Asia estimates of population outflows from China to Malaya, Indonesia, and the Philippines from 1851-1925.
A troubled history of colonization and subjugation has strained relations between Asian nations for years. Much of the mutual animosity is rooted in intraregional conflicts such as the two Sino-Japanese wars (the first during the late 1800s and the second in the 1930s), the Japanese invasion of Korea in the 1500s, the Sino-Vietnamese war, the Cambodian-Vietnamese war in the 1970s, and the Japanese empire’s Second World War campaign, which affected much of Southeast Asia.
Estimated number of Chinese migrants in three Asian countries, 1851-1925 (in thousands) Year
Most Chinese in Southeast Asia today are descendants of migrants from southern China who arrived in the 19th century. According to the 2010 paper published in the International Journal of China Studies, “Migration and Trade: The Role of Overseas Chinese in Economic Relations between China and Southeast Asia,” mass Chinese migration to Southeast Asia can be divided into four waves: the first during mid-17th century after the Europeans arrived; the second coming in the mid-19th century, characterized by massive labor exodus caused by China’s defeat at the hands of the British and French in the second Opium War; the third taking place in the 1920s-1930s triggered by a booming Southeast Asian economy; and the fourth taking place during the late 1980s, due to increase in bilateral trade and Chinese investment in Southeast Asia.
PREVIOUS PAGE
The
cenSEI Report
Indonesia
Philippnes
1851-75
350
250
45
1876-1900
360
320
20
1901-25
125
300
n/a
Table from “Labor Crossings in Southeast Asia: Linking Histoircal and Contemporary Labor Migration,” New Zealand Journal of Asian Studies, page 280
However, it seems much of the xenophobia in Southeast Asia today is directed at ethnic Chinese. And while flare-ups with China as a nation might show up in recent history, xenophobia aimed at ethnic Chinese goes back much further, back to the mass migration of ethnic Chinese to Southeast Asia.
The following table, adapted from the book “Patterns of Migration” by Lynn Pan and published in a paper by Amarjit Kaur, professor of Economic History at the University of New England in Australia, presents
Malaya
Their experience with discrimination parallels that of many immigrants around the world. According to an August 2001 BBC analysis of Southeast Asia’s Chinese population, ethnic Chinese have for years suffered racial bias throughout the region in the form of unwritten social contracts as well as institutionalized government policies. In fact, some 80 years ago, King Rama VI of Thailand was said to have labeled the Chinese the “Jews of the East.” Assimilation has been greatest in the Philippines and Thailand, while discrimination is most acute in Indonesia, notes the BBC report. According to a Jan. 2012 Jakarta Post article discussing racism directed at ethnic Chinese in Indonesia, the minority Chinese had become affluent due to privileged access to the economy, which then incited jealousy from the majority and, in May 1998, many Chinese were murdered, their properties damaged, and many Chinese women systematically raped. In Indonesia today, Esther Indahayani, a human rights activist of Chinese descent tells The Jakarta Post that there are no more institutional obstacles facing ethnic Chinese nowadays, “except for their own fear they could face problems when they enter the public sector.”
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
19
Report
‘Sino-Japan relations are often described as hot in trade and cold in politics, but now even the trade relationship is getting cold... It’s hard to tell which side would suffer more from cooling trade but for sure the hurt will be deep for both’ -Zhang Jifeng, Chinese Academy of Social Science researcher, as quoted in a Bloomberg article
Will Malaysian racism block economic development? In Malaysia, a February 2011
According to Malott, in order for Malaysia to
opinion piece in The Wall Street Journal by John
2020, it must grow by 8% every year during this
R. Malott, a former U.S. ambassador to Malaysia,
decade, which will be hard to achieve at the rate at
discusses how racial and religious tensions in the
which skilled professionals are leaving the country.
country are resulting in slower economic growth and
According to the article, almost half a million
the depletion of the local talent pool.
Malaysians had fled between 2007 and 2009. Most
reach its goal of becoming a developed nation by
of them were skilled ethnic Chinese and Indian Malott says that despite Prime Minister Najib Tun
Malaysians who grew “tired of being treated as
Razak’s “One Malaysia” theme, which emphasizes
second-class citizens in their own country.”
“unity in diversity,” his government’s words and actions betray a tolerance for and, sometimes, a
Malott argues that these emigrants take with them
provocation of ethnic factionalism. For instance,
their expertise in business, science, and engineering
opposition leader Lim Kit Siang says that Utusan
– which Malaysia sorely needs in order to secure
Melayu, the leading Malay-language newspaper,
its future – as well as their linguistic and cultural
regularly prints fabrications that fuel animosity
knowledge that could enhance the country’s ties
between racial groups. The daily publication, which
with the two biggest growing markets in Asia: China
is reportedly owned by the Prime Minister’s political
and India.
party (login required to read the full article), is known for habitually attacking Chinese Malaysian politicians, and has even suggested that
Territorial disputes fuel extreme nationalism offline. The recent territorial disputes have also
Chinese Malaysian parliamentarian Teresa Kok
fanned the flames of nationalism, sometimes
should be killed.
bringing it uncomfortably close to xenophobia.
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Xenophobia in modern Asia
The row between Japan and China has caused several Japanese companies to shut down operations in China. A Sept. 17 Bloomberg article reported that Japan’s Fast Retailing closed 42 of its Uniqlo clothing stores in China, Aeon Co., Ltd. shuttered 30 of its 35 stores in Shandong and Guangdong, and anti-Japanese protesters in China have “ransacked retailers, smashed store fronts and overturned cars, with fires having damaged a Panasonic Corporation plant and a Toyota Motor
News & Strategy Alerts World
20
As global recovery slows, the IMF tells the U.S. and Europe to act fast With forecasts cut in the new IMF World Economic Outlook, Asian nations must reassess growth models to weather the still-scary crisis
Corporation dealership.” The dispute is further deteriorating already strained Sino-Japan relations. Back in 2005, demonstrators from several cities in China called for a boycott of Japanese goods because of a dispute involving school textbooks that, according to critics, “downplayed Japan’s wartime atrocities.” Says Chinese Academy of Social Science researcher Zhang Jifeng, “Sino-Japan relations are often described as hot in trade and cold in politics, but now even the trade relationship is getting cold... It’s hard to tell which side would suffer more from cooling trade but for sure the hurt will be deep for both.” And while, according to a Sept. 22 article in The Economist, the tussle between Japan and China has largely boiled over now, it will take decades to undo the effects of the skewed recollection of history by many other Asian countries. Writes the author, “honest textbooks would help a lot.” As Asia moves towards greater prosperity, it becomes all the more urgent for ethnic/racial issues to be addressed. Otherwise, they could set the stage for greater conflict that may undo what progress has been achieved so far and undermine efforts towards a more interconnected future in this rapidly developing region.
PREVIOUS PAGE
The
cenSEI Report
“Global growth has decelerated and substantial uncertainties and downside risks remain. Key policy steps have been announced, but effective and timely implementation is critical to rebuild confidence. We need to act decisively to break negative feedback loops and restore the global economy to a path of strong, sustainable and balanced growth. Advanced economies should deliver the necessary structural reforms and implement credible fiscal plans. Emerging market economies should preserve or use policy flexibility as appropriate to facilitate a response to adverse shocks and support growth.” That was the core message from the International Monetary and Finance Committee (IMFC) of the International Monetary Fund, meeting in Tokyo last week, chaired by Singapore Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam. Released on October 13, the communiqué from the IMF’s top-level panel monitoring the global economy and financial system, really had just one word for the year so far, the same one most economists have mouthed since the 2008 financial crisis: scary. Things are getting worse, the Fund itself agreed in its October 2012 World Economic Outlook. One big reason: “policies in the major advanced economies have not rebuilt confidence in medium-term
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
21
prospects.” The IMF adds: “Tail risks, such as those relating to the viability of the euro area or major U.S. fiscal policy mistakes, continue to preoccupy investors.” In the three videos on the Fund’s World Economic Outlook site, IMF chief economist Olivier Blanchard says the report is a call to action for economies to effectively implement measures that will bring them on the road to recovery. “The world economic recovery continues, but it has weakened further,” he said in the WEO press conference (first video). “In advanced economies, growth is now too low to make a substantial dent in unemployment, and in major emerging markets, growth which had been strong earlier, has also decreased.”
with advanced economies, growth in emerging markets are solid. But as IMF senior economist for Asia Anoop Singh stresses 26 minutes into the briefing video on the Asia Pacific Regional Economic Outlook site, the region needs more inclusive, domestic-driven growth to address rising inequality and global imbalances. Right after those remarks (27 ½ minutes into the video), Singh replied to a question on Philippine prospects. He noted that the country is among Southeast Asian economies growing close to their potential. The Fund is keeping the Philippines’ GDP projection for 2012, updated in July, at 4.8%. The IMF did, however, cut the forecast for 2013 from 4.9% to 4.8% due to a weaker global economy.
Projected global growth is a mere 3.3% in 2012 and 3.6% in 2013, barely above the 2% recession level. Uncertainty over the euro zone crisis still affects economies around the world. Confidence in the global financial system remains shaky, and bank lending sluggish in advanced economies. At about 30 million jobless, unemployment remains above pre-crisis levels and will likely stay elevated in many parts of the globe. IMF chief economist Blanchard: Western policy makers must make right choices IMF
The key issue is whether or not the current scenario is reflective of a bumpy recovery or a more lasting slowdown. The IMF’s Asia Pacific Regional Economic Outlook reports: “Growth in the AsiaPacific region has slowed. External headwinds played a major role, as the recovery in advanced economies suffered setbacks. Weaker momentum in China and India also weighed on regional economies. For Asia as a whole, GDP growth fell to its lowest rate since the 2008 global financial crisis during the first half of 2012.”
Min Zhu, deputy managing director of the IMF, told participants at the World Economic Forum’s Annual Meeting of the New Champions that more than survival, the challenge for Asia is to lead global growth. Asian economies, he adds, must address first challenges and pursue the necessary reforms, such as investing in infrastructure, strengthening manufacturing capabilities, and moving to a domestic consumption model.
In sum, even Asia, the global growth leader, is catching the slowdown bug, although compared
The Organisation for Economic Co-operation and Development (OECD) believes growth in Southeast
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
22
Asia remains solid in the medium-term, 2012-2016, according to a November 2011 press release. The international body adds that ASEAN economies
are turning to domestic drivers of growth in the medium-term and are exploring “green growth” as an alternative strategy for sustainability in the long-term. Engines of growth for the region include: large-scale investments ASIA CHUGS ALONG in infrastructure, private Real GDP growth, percent change year-on-year consumption driven by the growing middle-class, and reforms in Difference Actual data and social policies. from April latest projections
2012 WEO
2010
2011
2012
2013
2012
2013
Australia
2.5
2.1
3.3
3.0
0.3
-0.5
Industrial Asia
4.1
-0.2
2.4
1.6
0.2
-0.5
Japan
4.5
-0.8
2.2
1.2
0.2
-0.5
New Zealand
1.8
1.3
2.2
3.1
-0.1
-0.2
East Asia
9.9
8.2
6.8
7.4
-0.6
-0.6
China
10.4
9.2
7.8
8.2
-0.4
-0.6
Hong Kong SAR
7.1
5.0
1.8
3.5
-0.7
-0.8
Korea
6.3
3.6
2.7
3.6
-0.9
-0.3
Taiwan Province of China
10.7
4.0
1.3
3.9
-2.3
-0.8
South Asia
9.8
6.9
5.0
6.0
-1.8
-1.2
Bangladesh
6.4
6.5
6.1
6.1
0.2
-0.3
India
10.1
6.8
4.9
6.0
-2.0
-1.3
Sri Lanka
7.8
8.3
6.7
6.7
-0.7
-0.3
Brunei Darussalam
2.6
2.2
2.7
1.5
-0.5
-0.1
Cambodia
6.1
7.1
6.5
6.7
0.2
0.3
Indonesia
6.2
6.5
6.0
6.3
-0.1
-0.3
Lao P.D.R.
8.1
8.0
8.3
8.0
-0.1
1.0
Malaysia
7.2
5.1
4.4
4.7
0.0
0.0
Myanmar
5.3
5.5
6.2
6.3
0.2
0.4
Philippines
7.6
3.9
4.8
4.8
0.7
0.1
Singapore
14.8
4.9
2.1
2.9
-0.6
-0.1
Thailand
7.8
0.1
5.6
6.0
0.1
-1.5
Vietnam
6.8
5.9
5.1
5.9
-0.5
-0.4
ASEAN
Emerging Asia
1
7.6
9.6
4.6
7.4
5.1
6.1
5.5
6.8
0.0
-0.8
Emerging Asia includes East Asia, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. IMF World Economic Outlook Table
PREVIOUS PAGE
The
cenSEI Report
-0.5
-0.7
A 2012 HSBC Global Research report on macro Asian economics details the performance of and outlook for countries in the region. India’s economy slowed in 2011 with easing private consumption and a drag in investment. Indonesia’s GDP growth remained steady the past year and is expected to be “sustained by domestic demand, which is fuelled by structural factors, such as demographics, rising incomes and urbanization.” Malaysia’s domestic demand is expected to hold up well, which is “supported by a solid employment outlook and monetary and fiscal stimulus.” Vietnam’s exports have been strong, especially in terms of agricultural products, garments, and crude oil, yet the government must address high inflation. In sum, Asia is doing generally fine. Now, let’s hope America and Europe do the needful to keep the world economy from falling off the edge again.
• October 15-28, 2012
NEXT PAGE
23
BUSINESS
cenSEI T H E
Report
Preventing Mining Disasters Accidents might happen, but they can be prevented By Victoria Fritz
STRATEGY POINTS Among metal and mineral mines, such as those found in the Philippines, mining disasters usually involve tailings leaks and environmental damage In coal mines, of which countries like China have many, accidents are usually caused by methane gas explosions State-of-the-art technology is now available and being used in mines in developed countries like England and Australia to minimize the risk of mining disasters
A
mining accident in Benguet has called attention once again to the need for improving safety procedures in mining operations. A Sept. 4 Philippine Star story reported a new mine tailings leak at Philex Mining Corporation’s Padcal mine in Benguet province. This new disaster could mean huge losses for the company on many fronts. In an Oct. 1 Business World article, the company announced that although the sinkhole has been fully plugged, after inspection, the pond might have to be condemned anyway. Building a new pond will cost
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
around ₱300 million. As of Oct. 5 interaksyon.com reported that Philex was scouting for the site of a new tailings pond. The interaksyon.com article also stated that in late September, the Mines and Geosciences Bureau notified Philex of a fine amounting to ₱1.034 billion for the spill of solid waste from the mine. The ₱1.034 billion fine imposed by the Mines and Geosciences Bureau (MGB) refers to over 20 million metric tons of waste discharged, at ₱50/MT. This is based on the Philippine Mining Act of 1995 and its revised implementing rules and regulations
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Preventing mining disasters
(section on Environmental and Safety Concerns), which imposes a penalty of ₱50/MT on “mining companies that are found to have illegally discharged and/or [are] discharging solid fractions of tailings into areas other than the approved tailings disposal area.”
24
of lost revenues. Philex’ gross revenues from gold production alone came in at ₱9.29 billion in 2011.
Mining accidents in the Philippines. The
National Statistics Coordination Board compiles data on mining in the “Philippine EconomicEnvironmental and Natural Resources Accounting Compendium of Philippine Environment Statistics,” and focuses on mining in a subsection.
Together with more fines, Philex is at risk of losing its Environmental Compliance Certificate (ECC) over non-compliance with conditions set in the ECC According to an Oct. 3 Business World report, Environmental Management Bureau (EMB) chief Juan Miguel Cuna said that Philex violated terms in its ECC relating to the Clean Water Act, involving pond effluent discharges “way beyond regulatory levels.”
The following table lists the number of accidents, divided into non-lost time and lost-time tailings accidents. It also lists down days lost and incidence rate. To explain the table, the Mines and Geosciences Bureau provides a definition of terms in its Administrative Order on Mine Safety and Health Standards. Non-lost time accidents are those that do not prevent the injured workers from reporting for duty on the following day after the injury. Lost-time accidents prevent the injured workers from reporting for duty for a day or more after the injury. These accidents are divided into fatal and non-fatal accidents.
Cuna also clarified that penalties for ECC violations are separate from fines imposed for any violation of the Clean Water Act, which will be decided by the Pollution Adjudication Board (PAB). Fines are one thing. Revocation of the ECC, which means a halt in operations, is an entirely different and much more costly matter, in terms
Mining accidents in the Philippines, 1993-98 LTA
Category
NLTA
NonFatal
Fatal
Days Lost
Manhours Worked
Frequency Rate
Severity Rate
Combined FR & SR
Incidence Rate
FY 1993-1998 (All Operations)
1,984
2,022
68
453,289
297,519,735.82
7.02
1,523.56
5,351.31
13.69
1997-1998
478
319
10
68,158
53,215,994.94
6.18
1,280.78
3,959.12
15.16
1996-1997
410
417
14
94,547
57,051,442.00
7.55
1,657.22
6,259.82
14.74
1995-1996
323
437
15
100,995
58,007,385.05
7.79
1,741.07
6,783.31
13.36
1994-1995
332
495
15
99,145
60,412,230.60
8.44
1,641.14
6,927.26
13.94
1993-1993
441
354
14
NLTA - non-lost time accident LTA – lost time accident
PREVIOUS PAGE
90,444
68,832,683.23
5.35
1,313.97
3,512.43
11.75
Table from the “Philippine Economic-Environmental and Natural Resources Accounting Compendium of Philippine Environment Statistics,” section on Minerals Figure 6.4
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
25
Report
Incidence rates of mining accidents trending upward. The table below shows the steady increase in incidence rates of mining accidents in the Philippines from 1993-98. Table on Incidence Rate of Mining Accidents 1993-1998 16.00
13.94
14.00 12.00 10.00
13.36
14.74
15.16
11.75
0.00 93-94
94-95
95-96
96-97
97-98
The table shows the steady increase in incidences of mining accidents from 1993-98 Source: Table from the “Philippine EconomicEnvironmental and Natural Resources Accounting Compendium of Philippine Environment Statistics,” section on Minerals, Figure 6.4
Danger from leaked tailings. In mines that produce metals and minerals, the main risk is environmental damage due to leaked tailings. The afore-mentioned National Statistics Coordination Board compendium of Philippine environment statistics provides a summary of recent history as related to mine waste and tailings in the following graph. According to the European Commission website’s Environment section page on mining waste, mine waste refers to the material that must be removed to access the mineral resource, such as rock and topsoil. Mine tailings refer to what remains after minerals have been extracted from the ore. Mine tailings were highest in the Cordillera Administrative Region (CAR) during the 1990-99
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
period, where the Padcal mine is located. Mine waste was highest in Region 6 (Western Visayas) during the same period. Preventing accidents in metal and mineral mines. The Australian government’s Department of Industry Tourism and Resources Tailings Management handbook defines a state-of-the-art tailings storage facility as a safe, stable landform that does not require continuing management after mine closure, and blends with the surrounding landscape. Challenges to achieving this are: 1. It takes up large surface areas 2. Highly visible 3. The need to be able to store possibly large volumes of water 4. The danger of contaminated water seeping into the ground 5. The possibility of releasing contaminated drainage into surface streams 6. Dust problems For greater efficiency and economy, excess water from the tailings is removed at the processing plant before transport. More water and process chemicals are recovered for reuse, minimizing the discharge of water and contaminants to the tailings storage facility. This reduces the risk of seepage or release to surface waters. At present, many mining operations in Australia use thickened and paste tailings. Previous obstacles to this technology were either cost or the lack of a proper thickener technology. Today, costs have been reduced. Technology has also improved, to produce high underflow densities. The advantages of using thickened or paste tailings include: 1. Improving water and process chemical recovery at the processing plant
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Preventing mining disasters
2. Minimizing storage volume 3. Reducing seepage 4. Production of a more stable landform
26
of a sudden. Before that, in August, an explosion in Sichuan killed 19 miners, while a blast in Yunnan in November 2011 had 35 fatalities.
A possible step for mining companies in developing countries such as the Philippines is to send employees to observe and train in the mines of select developed countries who now use state-of-the-art technology in minimizing the risk posed by mining operations.
In fact, as compiled by Bridget Johnson in about.com, the world’s worst mining disasters have taken place in coal mines: 1. Benxihu Colliery – This iron and coal mine was in Chinese territory under Japanese control during World War II. On April 26, 1942, there was a coal-dust explosion that killed 1,549 workers.
Explosions in coal mines. Another type of mine common in other countries is the coal mine, where the primary risk stems from methane gas explosions. As recently as late September, China saw two separate coal mine accidents within one week. One experienced a fire, while the other one flooded all
2. Courrieres Mine – This mine in northern France had a coal-dust explosion on March 10, 1906. A total of 1,099 men, women and children workers were killed. Mine waste and tailing by region, 1990-1999 3. Mitsubishi Hojyo mine – On December 15, 1914, a gas explosion in this coal mine in Kyushu, Japan, killed 687 people.
90,000 80,000 70,000 60,000 50,000
4. Senghenydd Colliery – This Welsh coal mine had a coal dust explosion that killed 439 workers.
40,000 30,000 20,000 10,000 0
CAR
4
5
6
8
Mine Wastes
In thousand metric tons
9
13
Mine Tailings
Source: Table from the “Philippine Economic-Environmental and Natural Resources Accounting Compendium of Philippine Environment Statistics,” section on Minerals, Figure 6.5, National Statistics Coordination Board
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
5. Coalbrook mine – A rock fall in a section of this South African mine trapped 437 miners in January 21, 1960, of whom 417 succumbed to methane poisoning.
NEXT PAGE
cenSEI T H E
27
Report
Gold (and copper, nickel, and silver) in them thar hills The Philippines has a wealth of metals and minerals scattered across the archipelago, as detailed in the Mines and Geosciences Bureau’s map of operating mines around the country. Gold with Silver
Metallic Minerals Deposits in the Philippines
1 Project Name: Victoria Gold Project
Mine Location: Paco, Mankayan, Benguet (Cordillera Administrative Region) Company Name: LEPANTO CONSOLIDATED MINING COMPANY
2 Project Name: Masbate Gold Project
Mine Location: Puro, Aroroy, Masbate (Region V) Company Name: FILMINERA RESOURCES CORPORATION
1
2 Project Name: Masbate Gold Project
1 3
(Region V) Mine Location: Puro, Aroroy, Masbate Company Name: PHILIPPINES GOLD PROCESSING AND REFINING
2
3 Project Name: Paracale Gold Project
Mine Location: Jose Panganiban, Camarines Norte (Region V) Company Name: JOHSON GOLD MINING CORPORATION
3 1
4 Project Name: APEX Maco Operation
2
Mine Location: Masara, Maco, Compostella Valley Province, Davao del Norte (Region XI) Company Name: APEX MINING
2
5 Project Name: Co-O Gold Project 1
7 11
2
4
9
5
6
10
1
1 8
13 15 16
14
17
5
3
12
Mine Location: Rosario, Agusan del Sur (Region XIII) Company Name: PHILSAGA MINING CORPORATION
4
Copper with Gold and Silver 1 Project Name: Padcal Copper-Gold
Operation Mine Location: Padcal, Tuba, Benguet (Cordillera Administrative Region) Company Name: PHILEX MINING CORPORATION
2 Project Name: Toledo Copper Project Mine Location: Biga, Toledo City, Cebu (Region VII) Company Name: CARMEN COPPER CORPORATION
Map from Mines and Geosciences Bureau, “Location Map of Operating Mines in the Philippines,” from Mines and Geosciences Bureau website
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Driving development with mobile phones
3 Project Name: Canatuan Mining Project Mine Location: Sitio Canatuan, Brgy. Tabayo, Siocon, Zamboanga del Norte (Region IX) Company Name: TVI RESOURCES DEVELOPMENT PHILIPPINES, INC
Chromite 1 Project Name: Dinagat Chromite Project Mine Location: Loreto, Dinagat Island, Surigao del Norte (Region XIII) Company Name: KROMINCO INC.
Project Name: Homonhon Chromite Project Mine Location: Guiuan, Eastern Samar (Region VIII) Company Name: CAMBAYAS MINING
6 Project Name: Tubay Nickel-Cobalt
14 Project Name: Adlay and Dahican Nickel
7 Project Name: Cagdianao Nickel Project
15 Project Name: Carrascal Nickel Project
8 Project Name: Dinagat Chromite-Nickel
16 Project Name: Bel-at Nickel Project
Mining Project Mine Location: Tubay, Agusan del Sur (Region XIII) Company Name: SR METALS, INCORPORATED Mine Location: Valencia, Cagdianao, Dinagat Island, Surigao del Norte (Region XIII) Company Name: CAGDIANAO MINING CORPORATION Project Mine Location: Basilisa and San Jose, Dinagat Islands (Parcel II of SMR) (Region XIII) Company Name: AAM-PHIL NATURAL RESOURCES EXPLORATION AND DEVELOPMENT CORPORATION
Nickel
9 Project Name: Tagana-an Nickel Project
Mine Location: Hinatuan Island, Talavera, Tagana-an, Surigao del Norte (Region XIII) Company Name: HINATUAN MINING CORPORATION
1 Project Name: Rio Tuba Nickel Project Mine Location: Rio Tuba, Bataraza, Palawan (Region IVB) Company Name: RIO TUBA NICKEL MINING CORPORATION
Projects Mine Location: Adlay, Carrascal, Surigao del Sur (Region XIII) Company Name: CTP CONSTRUCTION AND MINING CORPORATION
Mine Location: Carrascal, Surigao del Sur (Region XIII) Company Name: CARRASCAL NICKEL CORPORATION
Mine Location: Bel-at, Esperanza, Loreto, Dinagat Islands, Surigao del Norte (Region XIII) Company Name: ORIENTAL SYNERGY MINING CORPORATION
17 Project Name: Cantilan Nickel Project
Mine Location: Magoslicom, Cantilan Surigao del Sur (Region XIII) Company Name: MARCVENTURES MINING AND DEVELOPMENT
10 Project Name: Nonoc Nickel Project
2 Project Name: Sta. Cruz Nickel Project
Mine Location: Nonoc Island, Surigao del Norte (Region XIII) Company Name: SHULEY MINE INCORPORATED
Mine Location: Sta. Cruz, Zambales (Region III) Company Name: BENGUET CORPORATION
3 Project Name: Sta. Cruz Candelaria
11 Project Name: Cagdianao Nickel Project
Mine Location: Cagdianao, Claver, Surigao del Norte (Region XIII) Company Name: PLATINUM GROUP METALS CORPORATION
Project Mine Location: Sta. Cruz, Zambales (Region III) Company Name: ZAMBALES
4 Project Name: Toronto and Pulot Nickel Projects Mine Location: Narra and Sofronio Espanola, Palawan (Region IVB) Company Name: CITINICKEL MINES AND DEVELOPMENT CORPORATION
5 Project Name: Berong Nickel Project
12 Project Name: Taganito Nickel Project
Mine Location: Taganito, Claver, Surigao del Norte (Region XIII) Company Name: TAGANITO MINING CORPORATION
13 Project Name: Tandawa Nickel Project
Mine Location: Cagdianao, Claver, Surigao del Norte (Region XIII) Company Name: SHENZHOU MINING GROUP CORPORATION
Mine Location: Quezon, Palawan (Region IVB) Company Name: BERONG NICKEL CORPORATION
28
Copper, Gold, Silver and Zinc 1 Mine Location: Brgy. Pagcolbon, RapuRapu, Albay (Region V) Company Name: RAPU-RAPU MINERALS, INC
1 Project Name: Rapu-Rapu Polymetallic Project Mine Location: Brgy. Pagcolbon, RapuRapu, Albay (Region V) Company Name: RAPU-RAPU PROCESSING INC.
Iron 1 Project Name: Leyte Magnetite Project
Mine Location: MacArthur and Javier, Leyte (Region VIII) Company Name: NICUA CORPORATION
Source: Mines and Geosciences Bureau
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
29
Report
Up-to-date technology should be used in personal protective equipment and emergency infrastructure
Prevention of mining disasters. Another contributor to about.com, Philippe Dozolme, who is a mining and explosives specialist, has several suggestions for preventing mining disasters: 1. Training should be mandatory, with annual refresher courses. 2. Up-to-date technology should be used in personal protective equipment, emergency infrastructure (fire alarm, gas management, ventilation, etc.) 3. Companies should shift to using safer explosives, such as water-based emulsion explosives and precise programmable detonators to set it off. These are much improved compared to unstable TNT-based explosives or erratic detonators. Electronic detonators allow a miner to have total system verification before the charge-and-fire sequence. 4. Machinery can replace miners in the most dangerous procedure In terms of specific steps to reduce the risk of explosion in coal mines, the World Coal Association suggests steps to keep methane levels at a safe level. In the mining process, methane is released from the
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
coal seam and surrounding coal strata. If it reaches a level of 5-15%, there is a high risk of explosion. In information published in January 2009, the global industry association of coal producers and stakeholders discusses these suggestions in detail. Methane is released in two key stages during the mining process: 1. During coal extraction in underground mines, the coal is extracted through longwall mining. Longwall mining releases methane previously trapped within the coal seam as layers of the coal face are removed. 2. The collapse of surrounding rock strata after the coal seam has been mined and the artificial roof and wall supports are removed as operations move to the next section. The debris from the collapse is called gob and also releases methane (gob gas) into the mine. The information includes recovery techniques: 1. Methane from the first stage above can be diluted and removed by large ventilations systems designed to move
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
News & Strategy Alerts Business vast quantities of air through them mine. These systems are meant to dilute methane to concentrations under 1%. 2. To avoid the release of gob gas, drill vertical gob wells directly into the coal seam’s surrounding strata before mining. These pre-drilled wells can receive gob gas once the collapse takes place, thus avoiding the release of methane directly into the mine. In April, Dr. Romulo Virola, National Statistical Coordination Board secretary general, writing in the NSCB’s “Statistically Speaking” blog about gold and mining in the Philippines, spoke about the potential revenues, among other things, of mining in the Philippines. Dr, Virola pointed out the potential total quantity of gold in the country is estimated at 4.914 billion metric tons. Applying the 2011 world market price of US$1,570 per troy ounce to that quantity would result in potential revenues of ₱7.36 trillion, enough, he noted, to completely eradicate poverty in the country. In calling for more dialogue between the various mining stakeholders in the country, he pointed out that the combination of vast gold reserves and current high market prices offers “fresh and promising prospects to reduce poverty in the country,” but it also tempts us “to sacrifice sustainability and the future of our children.” One cannot – and should not – force a false choice between prosperity from mining and environmental sustainability. Between technology, enlightened management, and earnest, honest dialogue, solutions can be forged to prevent mining accidents or to mitigate their effects, for the benefit of many or most, if not all.
PREVIOUS PAGE
The
cenSEI Report
30
NAIA to 13 flights: Navigation down — land in Clark Air transport facilitates world trade, helping countries participate in the global economy by increasing access to international markets and allowing globalization of production To lure more tourists arrivals, reforms in the Philippine aviation industry’s policies and infrastructure is a must
Thirteen international and domestic flights were diverted to Clark International Airport in Pampanga from the Ninoy Aquino International Airport in Manila Tuesday last week after the Very High Frequency Omnidirectional Radio Range (VOR) at the NAIA malfunctioned, according to an October 9 Manila Bulletin report. The VOR – which also bogged down in 2010 – is the navigational guidance system that aids pilots in locating and landing on the runway during bad weather and low visibility. In the report, aviation authorities say the VOR has been in use for over a decade and spare parts are hard to source. The recent incident delivers a blow in the country’s aviation industry, with its progress hindered by slow improvements in infrastructure and technology needed to boost the country’s competitiveness as a trade and tourism destination. The flight diversion also gives added urgency to Department of Transportation and Communications (DOTC) Secretary Joseph Emilio Abaya’s avowed
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
31
priorities (as reported by InterAksyon) of regaining Category 1 status for NAIA, which the U.S. Federal Aviation Administration downgraded years ago, and eventually transferring the international gateway to Clark. Unfortunately, there may be more airport problems before things get better. According to a Malaya article, the Civil Aviation Authority of the Philippines (CAAP) has admitted that it lacks modern equipment and technical personnel to regain Category 1 rating and get the Philippines off the European Union aviation blacklist. That is bad news for travel, trade, tourism and the overall economy. Both the Airports Council International and International Air Transport Association agree that the aviation industry plays a vital role in supporting economic growth. Air transport, the IATA says, facilitates every country’s integration into the global economy, providing direct benefits for users and broader economic benefits “through its positive impact on productivity and economic performance.” Moreover, apart from employing large numbers of highly skilled workers, the industry is “an essential input into the rapidly growing global economy.” By providing better access to domestic markets, resources, and international capital markets, and enhancing links within and among businesses, improvements in the aviation sector will necessarily bring about economic productivity. In its 2012 study “Aviation Benefits Beyond Borders,” conducted by Oxford Economics for the Air Transport Action Group, air transport facilitates world trade, helping countries participate in the global economy by increasing access to international markets and allowing globalization of production.
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
Globally, the air transport industry supported 56.6 million jobs in 2010, including 8.4 million direct jobs and 34.5 million jobs through aviation-enabled tourism. Indispensible for tourism and business, the study also found out that 51% of tourists travel by air and, in a recent survey of over 2,200 business people, 87% rate face-to-face meetings as essential for sealing the deal, while 52% say that restrictions on the numbers of flights they take for work would hurt their business. Now that the country is eyeing some 4.6 million tourist arrivals by the end of 2012, it is imperative for the government to prioritize the modernization, or at the very least upgrading of air traffic control system and airport infrastructure, to lure more tourists to visit the country and facilitate the efficient flow of business. Economic impact of air transport in Asia-Pacific in 2010
Source: Aviation Benefits Beyond Borders, IATA
“Physical infrastructure plays a critical role in promoting economic development, inclusive growth, and regional integration, by improving a country’s productivity, connectivity, accessibility, and attractiveness,” said Thierry Geiger, project manager of The ASEAN Travel & Tourism Competitiveness Report 2012. Clearly, Secretary Abaya and the CAAP have got their work cut out for them.
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
32
The PLDT-GMA7 nuptials are off
(Meralco), water (Maynilad), and infrastructure (Metro North Tollways Corp.).
After failing to arrive at mutually acceptable terms, PLDT and GMA Network ended merger talks MediaQuest, a PLDT trust fund, has major investments in TV5 and Cignal Digital TV, and minority shares in The Philippine Daily Inquirer, Business World, and Philippine Star
The PLDT-GMA Network talks have fallen through, after failing to arrive at “mutually acceptable terms despite the continual discussions and efforts exerted in good faith,” based on an October 5 report in The Philippine Daily Inquirer. Still, PLDT chairman Manuel V. Pangilinan declared in a statement: “The PLDT Group continues to believe that owning, producing and providing content across multiple platforms is an important component of its blueprint for growth…” MediaQuest Holdings Inc., controlled by the PLDT Retirement Fund, had sought to acquire GMA in PLDT’s bid evolve from a traditional telecommunications company into a multimedia service enterprise. MediaQuest has major stakes in TV5 and satellite TV firm Cignal, as well as shares in print media, such as The Philippine Daily Inquirer, Business World, and The Philippine Star. To date, Pangilinan controls major enterprises in telecommunications (PLDT and Smart), healthcare (Makati Med and others), mining (Philex), electricity
PREVIOUS PAGE
The
cenSEI Report
What started as a small investment company in Hong Kong, First Pacific, where Pangilinan sits as managing director and CEO, has grown as an investment management and holding company. Its principal investments include Indonesia’s Indofood, PLDT, Philex Mining, and Metro Pacific Investments Corporation, which has an infrastructure-based growth portfolio. For now, industry watchers will just have to wait and see whether Pangilinan will make another push to acquire a second TV network. Experts say, however, that ending the talks allows PLDT to focus on its core businesses and avoid the regulatory risks involved. In the Inquirer story, Pangilinan’s group was reportedly not willing to shell out the “advance” amount, given that the deal “could encounter rough sailing among regulators.” And understandably so. When PLDT acquired a majority stake in Digital Telecommunications Philippines (Digitel), owner of “unlimited” services pioneer Sun Cellular, it was opposed by some consumer groups and rival Globe Telecom, fearing a cellphone monopoly in the making. The top mobile provider, Smart Communications, is a subsidiary of PLDT. Nonetheless, the National Telecommunications Commission (NTC) approved the deal given certain conditions like the continuance of Sun’s unlimited service offers. For anti-cartel groups, the prospect of possibly linking up what would have become the largest TV network with the leading telecom group, Meralco’s vast broadband-capable power lines and Cignal’s satellite technology — all that in an election year — might have just triggered a media-hogging round of congressional hearings.
• October 15-28, 2012
NEXT PAGE
33
TECHNOLOGY
PREVIOUS PAGE
CONTENTS
cenSEI T H E
Report
NATION
WORLD
BUSINESS
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Better sports through technology
Better Sports Through Technology A rundown of sports technologies that can help competitive athletes and weekend warriors step up their game By Marishka Noelle M. Cabrera
STRATEGY POINTS Innovation in sports technologies focus on performance-enhancing, coaching, officiating, and broadcasting More important than devices, improving the human experience through technology is what counts In the future, gadgets that make the sport safer, scoring more precise, and the viewing more engaging are seen to be developed further
PREVIOUS PAGE
The
cenSEI Report
34
The 2012 London Olympics may be over, but the fascination lingers over sports and the new technologies that improve performance and coaching or enhance the spectators’ viewing experience. Here is a rundown of some of the different gadgets and innovations making their way into the world of pros and sports enthusiasts alike.
Performance-enhancing technologies. In a
feature in Discovery Tech, writer Amy Grossman tackles the different technologies transforming sports. “Athletes capitalize on advances from engineering, material science, biomechanics, communication and information technologies to maximize training and performance,” she says. In addition, most advances in sports technology deal with material science and design. Grossman mentions how biomimicry – where engineers turn to nature for inspiration – and computational fluid dynamics (CFD) are being utilized to up the ante for sporting gear and help athletes set new records. CFD is a branch of fluid dynamics that uses numerical methods to analyze problems involving fluid flows. Fluid dynamics is a subfield of physics that studies the movement of air, water, or gasses and the impact of objects as they move through fluids. In swimming and other speed-based sports, CFD is used to create the optimal gear that could spell the difference between winning the medal and trailing behind.
Swimsuits make a splash. For the 2008 Beijing Olympics, the Speedo LZR polyurethane swimsuit was unveiled. That year, 94% of the swimming races were won using the LZR and 23 new world records were set, according to a July timeline feature in Scientific American. The LZR is a polyurethane swimsuit, with panels that help reduce muscle vibration, improved the swimmer’s buoyancy, and minimized drag.
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
35
‘There’s an arms-race quality to performance-enhancing technologies in sport’
~ Thomas Murray, former president of the Hastings Center
It seems that the suit worked a little too well, prompting the Fédération Internationale de Natation (FINA), the governing body that regulates swimming, to come up with new rules regarding the garments, e.g., swimsuits cannot cover the neck or go past the shoulders and ankles. FINA eventually banned all non-textile swimsuits, notably polyurethane. Used in this year’s Olympics, FastSkin3 is the redesigned suit, cap, and goggle system, which Speedo claims can reduce a swimmer’s drag by 16.6% underwater and 5.2% on the surface, plus an 11% improvement in the swimmer’s oxygen economy.
Getting a jump on the competition. In
basketball, Athletic Propulsion Labs boasts of the Load ‘N Launch technology that helps increase the vertical leap of an athlete. The system is located in the forefoot just in front of the ball of the foot through the toes. According to a description on its website: “The technology itself features a unique device that serves as a ‘launch pad’ housed inside a cavity at the front of the show, which compresses (The ‘Load’ phase) and then releases (The ‘Launch’ phase) as the athlete exerts force on the front of the foot.”
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
In an October 2010 report from ESPN, however, the National Basketball Association (NBA) is prohibiting players from wearing “any shoe during a game that creates an undue competitive advantage.” The ban affects Athletic Propulsion Labs’ Concept1 shoe.
Nanotechnology applied to sporting equipment. Nanotechnology is also being used to “alter the properties of sports equipment and, with it, improve athletic performance,” as discussed in a May article in The Guardian. For instance, carbon nanotubes are being used to make lighter and more durable bicycle frames and tennis rackets, as well as golf clubs and hockey sticks that give a more powerful and accurate drive.
Nonetheless, the article also raises the question of “technology doping,” given the competitive edge as a result of a technical aid, such as nano-enhanced equipment. Jim Parry, visiting professor of Olympic studies 2012 at Gresham College, London and professor of philosophy in the faculty of physical education and sport at Charles University in Prague, clarifies, “Anything called ‘doping’ would involve the secretive attempt to break the rules for advantage.” Moreover, the World Anti-Doping Agency is keeping
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Better sports through technology
a close watch on the different innovations that may be tantamount to technology doping, and provides a list of prohibited substances and methods. The article adds, however, that international sporting bodies that decide which innovations should be permitted often lag behind technological developments. “But unless every competitor has access to the same
36
equipment, competition can become unfair, reflecting strength of the technology rather than skill of the athlete,” the article cautions.
Video technology to help coaching and training. “Back then, analysis was done in the
coach’s mind, it was all subjective,” says performance
Creating superhuman athletes An August article from InnovationNewsDaily reprinted in Mashable poses the question: “Are humans or technology breaking Olympic records?” Citing the case of Oscar Pistorius, who “fought successfully to compete in the 2012 London Olympic Games with his two artificial legs,” the article focuses on concerns about the boost in athletic performance given by technology versus the celebration of human ability without “technological tweaks.” In an August story in The Guardian, the Paralympic gold medalist from South Africa is said to shy away from questions about development in prosthetics because, the article posits, “he does not want people to make the mistake of thinking it is the technology that made him capable of running as fast as he does.” Cited in the afore-mentioned InnovationNewsDaily article, a July report by the Institution of Mechanical Engineers (IMechE) entitled “Sports Engineering: An Unfair Advantage?” notes, “Technology is as much a part of an athlete’s armoury as nutrition, training and coaching.” The sports industry, it says in the report’s executive summary, is becoming more adept at adapting new technology and exploiting it to create faster, lighter, or more efficient equipment. But how does one draw the line between technology and innate human ability affecting athletic performance? “There’s an arms-race quality to performance-enhancing technologies in sport,” Thomas Murray, former president of the Hastings Center, a New York-based bioethics and public-policy foundation, says in a July news feature in Nature. There are pills for strength and power, such as anabolic steroids and human growth hormone pills. Blood doping through blood-cell transfusions or the use of Erythropoietin (EPO) aims to increase the number of oxygen-carrying red blood cells, thereby increasing stamina. Gene therapy to make it possible for athletes to enhance their DNA is also being explored. “For decades sports regulators have co-opted new technologies into sport without taking away from the dedication and effort of the individual athlete or the spirit of the sport,” the IMechE report suggests. “This delicate task will be made all the more difficult as sports technology becomes ever more powerful,” it stresses.
PREVIOUS PAGE
The
cenSEI Report
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
37
analyst Stafford Murray in a July BBC report. About 20 years ago, performance analysts were rare, and their work was done discreetly, since bringing a camera and laptop to sporting events met with disapproval from governing bodies, apart from making players and coaches wary. Nowadays, however, video analysis is essential, and most athletes work with both a coach and an analyst.
shooting skills and ball-handling mechanics.” Without altering its flight or bounce, a five-gram circuit board is affixed to the inside of a basketball to wirelessly transmit data to a computer as the players run through dribbling or shooting drills. The board gathers data from its accelerometers and gyroscopes so players and coaches can analyze their performance.
As discussed in the report by Paul Barratt, a biomechanist working with the British cycling team, off-the-shelf Quintic software, with the use of reflectors and high-speed cameras recording 300 frames per second, can track and digitize strategically placed markers frame by frame. This makes it possible, for instance, to measure and analyze position, velocity, and acceleration data of a cyclist’s individual joints.
The article notes the system is already being used in youth leagues and at five U.S. top-20 basketball programs. The team is licensing the chip to “make other sporting goods [such as golf clubs, soccer balls, and baseball bats] smart, too.”
Software from digital-image specialist Dartfish is designed to work with live video feeds and can be used during competitive matches. The BBC article says that the company’s software, originally developed by the Swiss Institute of Technology in Lausanne, has been picked up by the U.S. Olympic Committee, football clubs such as Manchester United, and broadcasters such as the BBC. One feature of the software is the StroMotion feature, which breaks down complex actions, e.g., a run-up to a high jump, “into a series of static moments that unfold through video.” Another is the Simulcam, which allows the user to overlay the performance of two athletes to be able to compare and make necessary adjustments during the actual performance.
Before winning two Olympic gold medals for Great Britain, distance runner Mo Farah used a breathing training device called the RespiBelt. Developed by Progressive Sports Technologies based at the Sports Technology Institute at Loughborough University in the U.K., the device provides additional load to the athlete’s breathing effort. According to Respibelt.com: “The breathing muscles adapt becoming stronger and more efficient. In turn, this brings overall improvements in athletic performance, such as improvements in running economy.”
Information technology makes equipment ‘smart.’ As discussed in a January 2011 article in
Popular Science, InfoMotion Sports Technologies teamed up with researchers from the University of Michigan “to create a smart ball that assesses
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
The Respibelt is a breathing training device used by gold medalist Mo Farah of Great Britain. Video from Respibelt.com
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Better sports through technology
Ingestible computers for vital signs, an iPhone app to build concentration. In the
afore-mentioned Discovery Tech article at the beginning, Grossman also mentions ingestible computers, such as the thermometer pill, to monitor the core body temperature of the athlete, thus preventing heat exhaustion. The pill, which contains a quartz crystal sensor and micro-battery wrapped in silicon, was initially developed by NASA and Johns Hopkins University to monitor astronauts from space. “Once swallowed, a sensor transmits temperature and heart rate data to the trainer as it travels through the gastrointestinal tract,” the article says. Not overlooking the mental wellbeing of an athlete, the iPerformance Psychology Mental Skills app for your iPhone, available at the iTunes app store, helps with concentration through games and activities designed to prepare the individual for peak performance levels. The iPerformance skills include: attention control, energy regulation, imagery, commitment, concentration, confidence, and composure.
Technology boosts timing, scoring for swimming, cycling, and football.
As discussed in an August post in Discovery News by writer Eric Niller, Olympic timing technology has come a long way since the 1932 Olympics, when timekeepers held stopwatches that measuredtenths of seconds. Fast-forward to 2012, “sprinters’ times are now electronically measured to one-millionth of a second,” thanks to the Quantum digital quartz timer for swimming and track cycling unveiled by Omega Timing (p. 26), the official Olympics timekeeper for the past 80 years. Moreover, “[f]inish-line cameras shoot two thousand frames per second to break ties at the finish, double the speed of cameras at the Beijing Olympics in 2008.”
PREVIOUS PAGE
The
cenSEI Report
38
A July report from U.K.’s The Daily Mail, meanwhile, reveals the International Football Association Board (IFAB) has finally given the go-signal to the Premier League and Football Association to introduce the Hawk-Eye and GoalRef systems in their competitions. Both systems aim to aid referees in making a decision, rather than “being the deciding factor in whether the ball crossed the line.” The two have also undergone a comprehensive series of tests conducted by EMPA – the Swiss Federal Laboratory for Materials Science and Technology – and IFAB sources.
Cameras and magnetic fields for football. The
British-designed Hawk-Eye system uses cameras, while GoalRef, a development by German research institution Fraunhofer, uses magnetic fields. Each system should be able to immediately send a message “to a watch worn by the match officials within a second of the ball crossing the line.” A press release on the Fraunhofer website explains how GoalRef works: “Ten antennae behind the goalpost and crossbar create and monitor a weak magnetic field. As soon as the ball nears the goal-line the field is influenced by thin spools in the football. A processor is then able to determine, by means of the antenna signal, whether the ball fully crossed the goal-line or not.”
This YouTube video explains how GoalRef works with the help of magnetic fields
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
39
Innovations in sports work to stretch the limitations of human ability
The Hawk-eye system, according to this press release, is based on numerous high-frame-rate cameras that are placed around the stadium and focused on each goal mouth to monitor the trajectory of the ball as it gets close to the line. “The data from the cameras is fed into a central processing unit that analyses the position of the ball relative to that of the goal line,” the release says.
a June 2010 BBC report, for the disallowed goal that would have leveled the score at 2-2. “The high-profile error sparked a clamour for referees to be given more assistance, with international players’ union FifPro leading calls for goal-line technology to be introduced,” the report says.
Possible sports technologies of the future.
With all these gadgets and gizmos changing the world of sports, some industry experts have their own take on what we could be seeing in the future. In a July article in Popular Science, writer John Brenkus, ESPN host and author of “The Perfection Point,” has some ideas on making the Olympics safer and performance scoring more precise.
A video shows how the Hawk-Eye system is able to track the movement and position of the ball to determine if a goal has been made
According to the article, FIFA (Fédération Internationale de Football Association) president Sepp Blatter is now supportive of goal-line technology, after Frank Lampard’s goal for England against Germany was disallowed in the 2010 World Cup. Blatter apologized to the Football Association, in
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
For equestrian games, holographic obstacles projected by computerized bases on the ground can replace the physical ones that often lead to injuries in both the rider and the horse. To alert the judges and the audience if the horse hits the obstacles, line-of-sight infrared beams could monitor the edges of these obstacles. In addition, smart landing pads developed by researchers at Arizona State University to be placed underneath the sand in the landing pit can help in the scoring of the exact length of athletes’ long jumps.
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
Better sports through technology
In an August post on ESPN, Dave Evans, chief futurist for Cisco Systems, talks about how the coverage of the Olympics has changed over the years, with “[m] yriad streams of content” made available via television and online through multiple mobile devices during the 2012 London Olympics. Technology enhances the viewing experience, and what Evans foresees are wearable cameras, for instance, which allows a person watching a match on his tablet, but through the real-time perspective of the wearer who is watching it live. Tiny cameras may also be placed in, say, a javelin as it is being thrown or even attached to an athlete while competing. With augmented reality, a technology that superimposes additional information on an image, the athlete’s image may be enriched with data such as his heart rate, speed, and respiration, as well as the external environment (i.e. wind speed and direction), through sensors in his body. “Such biometric information combined with the video image,” the article notes, “could help coaches and athletes train more effectively.” But because technology can provide that competitive edge, those with limited access to it, e.g., due to lack of funding, may find themselves at a disadvantage against well-supported athletes. Innovations in sports work to stretch the limitations of human ability, thus, governing bodies play a key role in setting standards to ensure that the competition remains fair. As such, they must be able to stay abreast with the latest technological advances in the field of sports. In the sporting world, technology is a welcome addition, so long as the display of sheer talent, skill, dedication, and discipline is not overshadowed, much less replaced, by the glitz of these new technologies. “Ultimately, technology serves one purpose: to improve the human experience,” Evans writes. “It’s really not about the device; it’s about people improving their experiences in ways that work for them,” he concludes.
PREVIOUS PAGE
The
cenSEI Report
40
News & Strategy Alerts Technology Southeast Asia’s fastest-growing smartphone market Among Southeast Asian countries, the Philippines is the fastest-growing market for smartphones The smartphone explosion is expanding the market for value-added telecom services
Sales of smartphones in the Philippines grew 326% this year, making it the fastest growing market for smartphones in Southeast Asia. According to a press release from market research firm GfK detailing the results of their study on the Southeast Asian mobile phone market, the country also posted the highest increase in smartphone market share within one year, rising from 9% to 24%. Observes Gerard Tan, GfK Account Director for Digital Technology, “Feature phones still reign as the more prevalent mobile phone type used by consumers in the region’s emerging markets… However, smartphones adoption is escalating at a rapid pace with individual country’s growth rates reported in the range of 42 to 326 percent.” Tan expects the smartphone market to grow even faster when more affordable, low-end smartphones from major manufacturers become widely available. According to Tan, several manufacturers have already announced plans to launch smartphones priced below $100.
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
41
The Metro Manila Development Authority traffic navigator, which is available for free on both Android and Apple platforms, helps motorists plot their travel routes with traffic information about the major thoroughfares. The government’s Project NOAH (Nationwide Operational Assessment of Hazards) mobile version promises to provide data on rain and flooding in the country.
One local company that is already moving to take advantage of the rapidly growing Philippine smartphone market is Globe Telecom. According to a press release from Globe published on Rappler, subscribers can now get the latest Android smartphones for free by signing up for a postpaid plan worth ₱299 per month. Among the affordable Android smartphones they offer are the Huawei Y100 and the Samsung Champ Deluxe Duo. Subscribers of competitor Smart Communications, on the other hand, can get the Nokia Asha 306 or the Samsung Galaxy Pocket for free with Plan 349. With the rapid increase in smartphone adoption in the country, telecommunications companies should anticipate a surge in mobile Internet usage and already improve their infrastructure so it can accommodate high data traffic and ensure quality of service. The government should also see this as an opportunity to expand the coverage and enhance the delivery of services via mobile applications, something that has successfully been implemented in India and Kenya. The World Bank report, “Information and Communications 2012: Maximizing Mobile,” offers valuable insight and recommendations on how to take advantage of the mobile revolution.
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
Now, sharing secrets can land you in jail The Data Privacy Act of 2012 was signed into law on August 15, less than a month before the Cybercrime Law was signed The law outlines the criteria for the lawful processing of personal information and penalizes the unauthorized processing, access, disposal, and disclosure of personal and sensitive information
Less than a month before the Cybercrime Law was signed, another bill that relates to digital data was enacted without much fanfare. On August 15, 2012, President Benigno Aquino III signed Republic Act No. 10173, otherwise known as the Data Privacy Act of 2012. The law mandates the public and private sectors to protect the confidentiality, integrity, and security of digital personal data. It outlines the criteria for
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
42
the lawful processing of personal information and penalizes the unauthorized processing, access, disposal, and disclosure of personal and sensitive personal information, with penalties ranging from fines of ₱500,000 to ₱5 million and prison terms of six months to seven years. The law also mandates the creation of a National Privacy Commission, which will be responsible for the administration and implementation of the Law.
asserted that the Cybercrime Law and the Data Privacy Act “constitute a double whammy against proponents of free expression, freedom of the press, and free speech.” The article quotes Atty. Jose Jesus Disini, an expert on information technology, who points out that the Data Privacy Act is even worse than the Cybercrime Law because it is more encompassing in terms of how it regulates information flow, and is worded so vaguely that its limits would be hard to define.
According to a press release from the Senate, the bill, which is sponsored by Senator Edgardo Angara, is patterned against Directive 95/46/EC of the European Parliament and Council and is at par with the Information Privacy Framework standards of Asia-Pacific Economic Cooperation.
Disini explains, “For example, if I said on Facebook that Noemi has a cold, so I identified her, and I even retweeted it, I already processed sensitive personal information… Since there was no expressed consent (from the subject), I violated the Data Protection and the Cybercrime Acts.”
The new measure raises the country’s data protection laws to international standards, something that, says Angara, could increase the IT-BPO industry’s revenue from $9 billion in 2011 to $25 billion by 2016, and boost it’s employment by an additional one to four million people in the next four years.
The government seems to have rushed the enactment of two laws that many consider contain questionable and objectionable provisions, while delaying the passing of another high-profile piece of legislation, the Freedom of Information Bill of 2012, which would mandate full public disclosure of government information. This has caused Nepomuceno Malaluan and Malou Mangahas of the Institute for Freedom of Information to accuse the government of abridging freedom of expression while reneging on freedom of information.
Angara is optimistic: “Right now, we are number one in voice services and call centers. And I think it’s very possible for us to become number one in data processing as well – meaning we can go into higher value-added IT services like engineering, finance, accounting, and healthcare, but only if we have an environment that is protective of data and information.” The Business Processing Association of the Philippines, in a press release, likewise hailed the signing of the bill into law. In an article dated September 28, 2012, the Philippine Center for Investigative Journalism
PREVIOUS PAGE
The
cenSEI Report
With no push from Malacanang, as reported by ABS-CBN News, the chances of a speedy approval of the FOI bill are slim. Amid mounting public disdain towards the government for seemingly supporting the restriction of citizens’ freedom of expression while lacking in commitment to promoting transparency and accountability on their own end, the Aquino administration should rethink its position or risk being accused of reneging on its campaign promise of bringing good governance to the Philippines.
• October 15-28, 2012
NEXT PAGE
43
TECHNOLOGY
cenSEI T H E
Report
The Perils of Early Pregnancy Teenage childbearing poses significant risks to the health and lives of both young women and their offspring By Pia Rufino
Joann Cubillas was just 13 years old when she first got pregnant six years ago. Currently, the teen mother who didn’t get to finish her studies, still lives with her parent, and works as a part-time waitress to feed her children whose father is in jail, she recounts to Qatarbased news network Al Jazeera.
In this YouTube Video, Joann Cubillas tells Al Jazeera her situation as a teen mother. Published: June 19, 2012
STRATEGY POINTS The number of teenage pregnancies in the Philippines has increased by about 70% from 2000 to 2010 There are differing reasons driving teenage pregnancies in countries across Asia, but nonetheless, complications in pregnancy is the leading killer of young women aged 15 to 19 around the world There are steps that can be taken by government policy-makers to help individuals and communities reduce the risks from teenage pregnancies, if not teenage pregnancies themselves
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
The number of teenage mothers (15 to 19 years old) in the Philippines who had their first baby has risen from 103,724 in 2000 to 174,085 in 2010—a nearly 68% increase over 10 years, per data from National Statistics Office (NSO) posted on the Catholic Bishops Conference of the Philippines (CBCP) website last month. Likewise, the figures for girls aged 14 and below rose from 616 to 1,260 during the same period. By 2010, more than a quarter of all women who gave birth to their first child were 15 to 19 years old. (See table on opposite page) Philippines’ teenage-pregnancy rate 2nd highest in ASEAN. The 2011 State of the World Population released by the United Nations Population Fund Agency presents the most recent estimates of adolescent birth rates by country. Among the Association of Southeast Asian Nations (ASEAN) member countries, the Philippines has the second-highest teenage pregnancy rate, with 53 teenage births for every 1,000 women, next to Lao People’s Democratic Republic (Laos) with 110/1,000 women. The adolescent birth rate per 1,000 women in both Indonesia and Cambodia is 52, followed by Thailand (43), Vietnam (35), Brunei (26), Myanmar (17) Malaysia (12) and Singapore (5).
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The perils of early pregnancy
Number of teenage mothers who gave birth to their first baby: philippines, 200-2010 YEAR
Age of Mother All Ages
%
Under 15
15-19
2000
534,322
19.5
616
103,724
2001
533,615
19.8
624
105,006
2002
529,115
19.4
692
101,572
2003
429,583
19.8
661
84,361
2004
559,775
20.5
893
111,935
2005
576,894
21.0
800
120,117
2006
582,763
22.3
753
129,077
2007
625,887
23.4
979
145,250
2008
651,159
24.3
1,091
157,194
2009
650,789
25.5
1,081
164,776
2010
655,980
26.7
1,260
174,085
Figures from the National Statistics Office cited in “Why teen pregnancies are on the rise” posted on the Catholic Bishops Conference of the Philippines website, October 11, 2012
In her presentation “Teenage Pregnancy in the Philippines: Facts and figures, trends and issues” during the National Youth Commission’s National Summit on Teen Pregnancy last month, Philippines’ Population Institute professor Dr. Josefina Natividad noted that the Philippines was the only country with an increasing teenage pregnancy rate among the ASEAN member countries, based on 1995-2005 UN data. Natividad lists the following predisposing factors for teen pregnancy in the country: • Early onset of menarche (first menstrual cycle) • Changes in family lifestyles less parental supervision, more opportunities for teenagers to be on their own (e.g., the phenomenon of parents being overseas Filipino workers or having both parents working) • Changes in norms and values less stigma for pregnancy outside of marriage no compulsion to marry when one is pregnant more acceptance of children born out of wedlock
PREVIOUS PAGE
The
cenSEI Report
44
• Early onset of sexual activity • Peer pressure for early sexual engagement • Acceptability of sexual intimacy in teenage relationships • Inadequate life skills in the face of this changing environment A Sept. 21 GMA-7 news report from the National Summit on Teenage Pregnancy (uploaded to YouTube by PINASWATCHER1) also cited figures from the National Statistics Office (NSO) showing that the number of teenage pregnancies increased by nearly 65% between 2000 (125,270) and 2010 (206,574), and that the number of pregnancies of women below the age of 14 also increased between 2000 (755) and 2010 (1,324). The report also featured Dr. Emma Llanto, president of Society of Adolescent Medicine of the Philippines, who also cited child abuse as a contributor to the rise of teenage pregnancies in the Philippines, based on her finding that the most frequent contributors to teenage pregnancies in her studies were men aged 27 to 28. Comparing the Philippines and Laos. Findings from the 2008 National Demographic and Health Survey conducted by NSO, show that young women who are poor, less educated (no school or only elementary schooling), and living in rural areas are more likely to have given birth than are young women in urban areas, those who are better educated, and in wealthier households. (P. 50) According to a June 2011 World Bank country profile, “Reproductive Health at a Glance,” early childbearing in the Philippines is more prevalent among the poor: “While 31 percent of the poorest 20-to-24 years old women have had a child before reaching 18, only 6 percent of their richer counterparts did.” Laos, with the highest teenage pregnancy rate among ASEAN members, has a very young population, with
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
45
55% of its estimated population of 6.2 million under 20 years of age, according to the World Health Organization report, “WHO Country Cooperation Strategy for the Lao People’s Democratic Republic 2012-2015.” Based on the report, teenage pregnancy in Laos is more a rural phenomenon than urban, involving 20.5% of girls aged 15-19 in rural areas (compared with 8.8% in urban areas), where they face the challenges of unplanned childbirths and restricted opportunities for better education. Abortion is illegal in the country. Dr. Bounthavy Sisouphanthong, Deputy Minister, Ministry of Planning and Investment in Laos, said, in his speech in observance of World Population Day 2012, although the country has made progress in improving access to family planning services and
births/000 women, asean 24.9 21.1
Vietnam Timor Leste
Singapore
7.4 5.6
Philippines Myanmar Malaysia
64.3
49 44.6
Thailand
24 18.9 16.1 14.5
46.9 51.6
52.3 47.3 57.7 49.3
Cambodia 1995-2000
Early marriage a driving factor in South Asia. In South Asian countries – India, Pakistan, Sri Lanka, Nepal, Maldives, Bhutan and Bangladesh -- early marriage is a contributing factor to teenage pregnancy, the Health Science Journal identified in its 2010 study “Factors associated with teenage pregnancy in South Asia: a systematic review.” Early marriage is common in these countries and women are expected to have a child soon after marriage. Almost 60% of 18-year-old girls in the sub-region are married by the age of 15 years, according to the study. Based on the afore-mentioned UNFPA 2011 State of the World Population, teenage pregnancy in South Asia is highest in Bangladesh (133/1000 live births), followed by Nepal (106) Bhutan (46) and India (45). In Nepal, 7% of girls are married by age 10 and 40% by age 15, based on the report 114.3 Population Reference Bureau’s 2011 survey “Who Speaks for Me? Ending Child Marriage,” as cited in the UNFPA report.
90.5 88.4
Lao PDR Indonesia
contraceptives, “access is still very limited for some marginalised groups who include those in remote areas, ethnic groups, young and unmarried women as well as men.”
2000-2005
Chart from Teenage Pregnancy in the Philippines: Facts and figures, trends and issues by Philippines’ Population Institute professor Dr. Josefina Natividad, Sept 14, 2012
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
TECHNOLOGY
“Socio-economic factors, low educational attainment, cultural and family structure were all consistently identified as risk factors for teenage pregnancy” in South Asia, according to the Health Science Journal review. Majority of teenage girls are aware of at least one contraception method but very few have put it into practice, resulting in unwanted pregnancies.
HEALTH/LIFESTYLE
NEXT PAGE
The perils of early pregnancy
46
Socio-economic consequences of teen pregnancy consequence on teen mothers, as cited in a May blog posted in The Economist. The authors, economists Melissa Schettini Kearney of the University of Maryland and Phillip B. Levine of Wellesley, find that teen moms end up in similarly economic outcomes as their childless sisters as well as with those young women who got pregnant but miscarried.
The Center for Global Development in its May 2012 paper on “Adolescent Fertility in Low- and Middle-Income Countries: Effects and Solutions” reviews recent research on socioeconomic consequences of teenage pregnancy in the developing world and policies to reduce teenage pregnancy and says teen childbearing is often perceived to impact girls’ socioeconomic status through two primary ways. “First, pregnancy might disrupt girls’ schooling and limit their human capital accumulation, which would consequently lower their later-life job prospects, productivity, and earnings. Second, depending on the norms of a particular society, out-of-wedlock childbearing by adolescent girls could be highly stigmatized and thus lead to social exclusion, alienation, and a higher likelihood of single parenthood, limiting girls’ access to social capital and family and community support. ”
The study concludes, “[B]eing on a low economic trajectory in life leads many teenage girls to have children while they are young and unmarried and that poor outcomes seen later in life (relative to teens who do not have children) are simply the continuation of the original low economic trajectory. That is, teen childbearing is explained by the low economic trajectory but is not an additional cause of later difficulties in life. Surprisingly, teen birth itself does not appear to have much direct economic consequence.”
The US-based non-profit think tank that focuses on international development finds that the children born to young mothers might also suffer since the young mom “could transmit her low socioeconomic status to her children through malnutrition, poor health status, and low educational attainment.”
The study finds that social and economic problems contribute to the high teen childbearing rates in the U.S and suggests that the government address difficult social problems particularly the perceived and actual lack of economic opportunity among those in the lowest economic status.
Based on the 2007 WHO discussion paper “Adolescent pregnancy –Unmet needs and undone deeds,” the social and economic consequences of early pregnancy rest on the adolescent’s cultural, family and communal setting. Moreover, WHO says socioeconomic disadvantages can be both a cause and a consequence of teen pregnancy. “Since adolescent mothers often come from poor social environments, socioeconomic problems in adulthood might reflect conditions that are already present before pregnancy or childbirth.”
Researchers at the Centers for Disease Control and Prevention (CDC) says the U.S. teen birth rate is the highest in the developed world, with about 400,000 infants being born to mothers ages 15-19 annually, in a report published by the United Press International in January.
Meanwhile, a March 2012 study “Why is the teen birth rate in the United States so high and why does it matter?” published in the Journal of Economic Perspectives finds teen childbearing as not having much direct economic
PREVIOUS PAGE
The
cenSEI Report
Based on the August 2012 CDC National vital statistics report “Births: Final Data for 2010,” the birth rate for women aged 15-19 in the U.S fell by 10% in 2010, to 34.2 per 1,000, reaching the lowest level reported in the U.S. in seven decades. The long-term declines in teenage birth rates have been linked to the strong pregnancy prevention messages directed to teenagers. Recent data has found increased use of contraception, such as condoms and hormonal birth control.
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
Report
47
Among the adverse consequence of teenage pregnancy identified in the Health Science Journal review includes: lower access to higher education, high divorce rates, premature death of women, population growth, weak and unhealthy children, and single motherhood.
Health risks for newborns of teenage mothers. Teenage pregnancy presents health risks for the newborns as well. In the 2008 analysis on Adolescent Pregnancy, the WHO says adolescent pregnancy negatively impacts the survival of the infants of teenage mothers.
Health risks for teenage mothers. Regardless of the differences in driving factors behind teenage pregnancies in different countries, early pregnancy exposes adolescents to high health risks. In its recent report “Every Woman’s Right: How family planning saves children’s lives,” the UK-based international humanitarian and development agency Save The Children said globally, complications in pregnancy are the top killer of girls aged 15 to 19. It notes that around 50,000 teenage girls and young women die every year during pregnancy or childbirth, in many cases because their bodies are not ready to bear children.
Citing a 2008 study, WHO notes that the average rate of newborn death is about 50% higher for adolescent mothers than for mothers in their 20s. Poor newborn health due to teen pregnancy can also have “inter-generational effects and also long term effects leading to adulthood disease.”
The report, which outlines the importance of women’s choice about the timing and spacing of their pregnancies, says the risk of maternal death is highest for adolescent girls under 15 years old. (P. 7)
Recommendations. To prevent early pregnancy, the WHO recommends the following drivers of intervention in its 2012 policy paper “Preventing early pregnancy and poor reproductive outcomes among adolescent in developing countries: what the evidence says.”
“Girls under 18 years of age are more likely to give birth to premature babies and experience complications during labour, including heavy bleeding, infection and eclampsia because they are not physically ready for childbirth. Their bodies are not fully developed and their pelvises are smaller, so they are more prone to suffer obstructed labour. In the absence of emergency obstetric care this can be deadly for both mother and baby.” Prolonged and obstructed labor can also cause great damage to an adolescent girl’s body, leading to obstetric fistula, according to the report.
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
Among the conditions which can be associated with adolescent childbearing and maternal health problems include obesity, anemia, malaria, sexually transmitted infections, mental illness, unsafe abortion and complications, says WHO.
1. Reduce marriage before age 18. Policymakers must put in place and enforce laws that ban marriage before 18 years of age. Individuals, families and communities must increase formal and non-formal educational opportunities for girls at both primary and secondary levels. 2. Create understanding and support to reduce pregnancy before age 20. Policy-makers must give strong and visible support for efforts to prevent early pregnancy. Specifically, they must ensure
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
The perils of early pregnancy
that sexuality education programs are in place. Curriculum based sexuality education must be widely implemented.
News & Strategy Alerts Health/Lifestyle Common solvents may cause birth defects
3. Increase use of contraception by adolescents at risk of unintended pregnancy. Policy-makers must intervene to reform policies to enable all adolescents to obtain contraception. To increase use, policymakers should consider reducing the financial cost of contraceptives to adolescents. 4. Reduce coerced sex among adolescents. Policy-makers must formulate and enforce laws that prohibit coerced sex and punish perpetrators. Addressing the growing problem of teenage pregnancies in the Philippines is a matter that will require a concerted, coordinated effort from the different sectors of society: ·
Parents instructing their children on how to protect themselves from peer pressure and potential abuse
·
Schools educating their students about the physical, moral, and even the larger social dimensions of reproduction
·
·
Authorities offering support for young people in potential abusive situations and action against established exploitative behavior Government policy-makers setting policies that help both young mothers and their newborns healthy and viable while convincing young people at large that teenage pregnancies have consequences beyond just young mothers.
PREVIOUS PAGE
The
cenSEI Report
48
With workplace substances linked to birth defects, there should be laws to keep the chemicals away from pregnant women
Pregnant women frequently exposed to solvents at work may face higher risk of having babies with birth defects, according to a French study cited in an ABS-CBN report. “Exposure During Pregnancy to Glycol Ethers and Chlorinated Solvents and the Risk of Congenital Malformations,” published in the journal Epidemiology, linked solvent exposure as reported by employees or cited in job descriptions, to the risk of major congenital defects, especially oral clefts, urinary tract and male genital malformations. Specifically, urine-breakdown products pointed to bleach-containing solvents and glycol ethers — solvents common in paints, cleaning products and cosmetics — as potential culprits, according to the report. A U.S. study published earlier this year also linked solvents to congenital heart conditions. Based on questionnaires, 45% of mothers whose babies had major malformations, reported “regular” exposure to the chemicals. These women were typically nurses, chemists, cleaners, hairdressers or beauticians. Among mothers with normal babies, only 28% had regular contact with solvents at work.
• October 15-28, 2012
NEXT PAGE
cenSEI T H E
49
HEALTH/LIFESTYLE Report
Exposure could lead to other reproductive health problems, according to the National Institute for Occupational Safety and Health’s (NIOSH) “The Effects of Workplace Hazards on Female Reproductive System.” These hazards include menstrual cycle effects, infertility and subfertility, miscarriage and stillbirths, low birth weight and premature birth, developmental orders, and childhood cancer. Harmful substances can enter a woman’s body by inhalation, skin contact, or ingestion, the primer said. Worldwide, about 8 million infants are born every year with a defect, according to “Global Report on Birth Defects: The Hidden Toll of Dying and Disabled Children,” a 2006 study by the March of Dimes Foundation, a birth defects research and advocacy group. The authors say their report is the first to provide global and country-by-country data on birth defects, with information from more than 190 nations. Of children affected by birth defects, some 3.3 million worldwide die each year before age 5, according to the report. Of those who survive, about 3.2 million will be mentally or physically disabled for life, although some difficulties may be mitigated with appropriate care. The World Health Organization (WHO) recommends measures to prevent many birth defects. Among them: prevention of sexually transmitted diseases, fortification of basic foods with micronutrients, anti-rubella vaccinations, and laws and policies to better handle toxic chemicals like certain agricultural products. The NIOSH also recommends basic workplace practices to avoid solvent exposure, such as: storing
PREVIOUS PAGE
CONTENTS
NATION
WORLD
BUSINESS
of chemicals in sealed containers, washing hands after contact with hazardous substances, wearing protective equipment, and conducting safety and health education and training.
A master filmmaker’s death spotlights a silent lady killer After a five-year battle with breast cancer, award-winning director Marilou Diaz-Abaya passed away October 8 Breast cancer is the most common malignancy in women, and early detection can be vital in improving chances of survival Award-winning director Marilou Diaz-Abaya passed away October 8 at the St. Luke’s Medical Center in Taguig City after a five-year battle with cancer, her son Marc told The Philippine Daily Inquirer. Diaz-Abaya, whose filmography includes “Milagros” (1997), “Jose Rizal” (1998), and “Muro Ami” (1999), was a prolific filmmaker with a string of international accolades to her name. Her works have made the rounds of festival in Dusseldorf, Munich, and Fukuoka. In 1999, “Jose Rizal” was screened as the closing film at the Guggenheim Museum in New York. In 2001, she received the Arts and Culture Prize from the Fukuoka Asian Culture Prizes for blending “entertainment, social consciousness, and ethnic awareness” in her works. In 2005, she was Women for Peace conominee for the Nobel Peace Prize.
TECHNOLOGY
HEALTH/LIFESTYLE
NEXT PAGE
50
Breast cancer incidence rates around the world. Pink zones represent regions with the highest incidence per capita Worldwide Breast Cancer
Diaz-Abaya was diagnosed with breast cancer in 2007. Just last September, she said on her Facebook page, “The cancer cells in my brain have been reduced significantly since my radiation program three months ago. I’m off chemo for a whole month.” Breast cancer is the most common cancer diagnosed in women, according to Cancer Research U.K. In 2008, approximately 1.38 million women around the world were diagnosed with breast cancer, and almost 460,00 succumbed to the disease. According to Worldwide Breast Cancer, an online resource for information on breast cancer, the U.S., U.K., Australia, and New Zealand have the highest incidence rates. According to the U.S. National Center for Biotechnology Information, women are at an
PREVIOUS PAGE
The
cenSEI Report
increased risk of developing the disease if they: • Got their periods before the age of 12 or reached menopause after the age of 55 • Have never had children or gave birth only after the age of 30 • Drink more than 1-2 glasses of alcohol per day • Have a family history of breast cancer • Have received hormone replacement therapy involving estrogen for a significant number of years In order to improve breast cancer outcome and survival, prevention and early detection are vital, says the World Health Organization. Early detection can be encouraged by promoting awareness of the disease, thereby helping people recognize the first signs of breast cancer. Living a healthy lifestyle also plays a big part in preventing the development of the disease.
• October 15-28, 2012
NEXT PAGE